J. Christian Nemeth
Subscribe to J. Christian Nemeth's PostsJ. Christian (Chris) Nemeth provides legal counsel on complex commercial litigation and government investigations, including ERISA matters, financial and banking cases, business torts and breach of contract actions. Chris is the Co-Chair of the Firm’s ERISA Litigation group and works closely with the Firm’s Employee Benefits department on all types of Litigation matters, Department of Labor investigations and similar issues. Read Chris Nemeth's full bio.
Federal Court Dismisses Challenge to ESOP Transaction
By J. Christian Nemeth and Richard J. Pearl on Aug 13, 2019
Posted In Benefit Controversies, Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues
In Lee v. Argent Trust Co., the court dismissed ERISA claims challenging an ESOP stock transaction because the plaintiff, who “fundamentally misunderstands the nature of the” ESOP transaction, did not allege that she suffered any injury. This decision is important to educate other courts about economics, particularly in cases where plaintiffs rely on little more than...
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Big ERISA Decisions on the Horizon—SCOTUS to Review Third ERISA Case this Term
By Brigid McCarthy, Brian Tiemann, J. Christian Nemeth and Richard J. Pearl on Jul 23, 2019
Posted In Benefit Controversies, Employee Benefits, Fiduciary and Investment Issues, Retirement Plans
The US Supreme Court recently agreed to review the Eighth Circuit’s decision in Thole v. US Bank, in which the Eighth Circuit held that participants in an overfunded defined benefit pension plan lack standing to sue for fiduciary breaches under ERISA. The Supreme Court’s decision in this case—the third ERISA case accepted by the court...
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Supreme Court Agrees to Hear Sulyma v. Intel Statute-of-Limitations Decision
By J. Christian Nemeth and Richard J. Pearl on Jun 18, 2019
Posted In Benefit Controversies, Employee Benefits, Fiduciary and Investment Issues, Retirement Plans
The US Supreme Court recently agreed to hear Sulyma v. Intel Corp. Investment Policy Committee, a case in which the Ninth Circuit ruled that ERISA’s three-year statute of limitations requires a plaintiff to actually read materials in order to start the running of ERISA’s three-year statute of limitations. ERISA § 413(2) bars actions more than...
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US Supreme Court to Review Unusual Second Circuit Decision in Stock Drop Case Against IBM
By Allison Crowe and J. Christian Nemeth on Jun 11, 2019
Posted In Benefit Controversies, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Retirement Plans
On Monday, the US Supreme Court agreed to review the Second Circuit’s decision in Jander v. Retirement Plans Committee of IBM, a “stock drop” lawsuit against IBM’s benefit plan fiduciaries. The Second Circuit’s decision marked one of the few times a federal court permitted a “stock drop” lawsuit to survive dismissal since the Supreme Court’s...
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Former Employee’s Release Agreement Bars ERISA Claim Against ESOP Fiduciary
By J. Christian Nemeth and Richard J. Pearl on May 21, 2019
Posted In Benefit Controversies, Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Retirement Plans
A recent summary-judgment decision explains how individual releases can bar the individual from pursuing ERISA fiduciary-breach claims on behalf of the plan. A plan, employer or fiduciary that wants to ensure a release that includes ERISA claims on behalf of a plan should consider language that addresses the court’s areas of inquiry in the case,...
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IRS Opens the Door to Lump Sum Payment Windows for Retirees in Pay Status
By J. Christian Nemeth, Jeffrey Holdvogt and McDermott Will & Emery on May 2, 2019
Posted In Employee Benefits, Retirement Plans
Due to an Internal Revenue Service (IRS) change in course published in Notice 2019-18, plan sponsors may now offer retirees lump-sum windows as another pension “de-risking” option. Plan sponsors considering pension de-risking opportunities and options should carefully evaluate the potential benefits and risks of a retiree lump-sum window. Access the full article.
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Eighth Circuit Rejects Cross-Plan Offsetting
By J. Christian Nemeth and Richard J. Pearl on Feb 12, 2019
Posted In Benefit Controversies, Employee Benefits, Fiduciary and Investment Issues, Health and Welfare Plans
A recent Eighth Circuit decision regarding “cross-plan offsetting” serves as an important reminder of how ERISA’s fiduciary duties impact both employers and fiduciaries who handle claims. The case involved the common practice of cross-plan offsetting, which occurs when a claims administrator resolves an overpayment to a provider by refusing to pay that provider for a...
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Georgetown University Defeats Retirement Plan Fee Litigation and “If a Cat Were a Dog, It Would Bark”
By Chris C. Scheithauer, Erin Steele, J. Christian Nemeth and Joseph K. Urwitz on Jan 29, 2019
Posted In Benefit Controversies, Employee Benefits, Fiduciary and Investment Issues, Retirement Plans
Recently, the US District Court for the District of Columbia dismissed a proposed class action lawsuit brought by former Georgetown employees under the Employee Retirement Income Security Act of 1974 (ERISA) over fees and investments in its two retirement plans. Plaintiffs alleged that Georgetown breached its fiduciary duty of prudence under ERISA by selecting and...
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ERISA Class-Action Litigation over Fees in Health and Welfare Plans
By J. Christian Nemeth and Richard J. Pearl on Dec 11, 2018
Posted In Benefit Controversies, Employee Benefits, Health and Welfare Plans
Sponsors and fiduciaries of health and welfare plans should be aware of a recently filed class-action lawsuit against alleged fiduciaries of a health plan. It challenges health-plan fiduciary oversight and reasonableness of fees similar to actions against fiduciaries of defined-contribution retirement plans. The action highlights the importance of establishing and documenting prudent fiduciary processes for...
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The Top Hat-Exemption After Sikora
By Elizabeth M. Rowe, J. Christian Nemeth and Joseph K. Urwitz on Nov 29, 2018
Posted In Benefit Controversies, Employee Benefits, Executive Compensation, Retirement Plans
The Employee Retirement Income Security Act of 1974 (ERISA) has long been a source of complex and often-expensive litigation for employers. However, as the number of actions brought by employees under ERISA have surged, employer-defendants have often relied on the so-called top-hat exemption to dismiss certain claims involving executives. Now, several federal courts of appeals...
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