Our Website Uses Cookies
We and the third parties that provide content, functionality, or business services on our website may use cookies to collect information about your browsing activities in order to provide you with more relevant content and promotional materials, on and off the website, and help us understand your interests and improve the website.
For more information, please contact us or consult our Privacy Notice.
Your binder contains too many pages, the maximum is 40.
We are unable to add this page to your binder, please try again later.
This page has been added to your binder.
- Home
- Practices and Industries
- Litigation and Investigations
- ERISA and Employee Benefits Litigation
With groundbreaking decisions in the U.S. Supreme Court and federal courts of appeal, we have successfully handled the spread of employee benefits litigation and contested agency proceedings, ranging from cases brought by individuals to class actions involving billions of dollars.
We have the requisite experience to represent clients in agency audits, investigations, and enforcement proceedings, and in challenges to plans’ tax-qualified status in U.S. Tax Court.
Cases that shaped ERISA law
We have litigated many of the key Supreme Court and appellate cases that have shaped the law under ERISA, including Supreme Court cases establishing the role of the plan administrator, the importance of plan documents and the liability of a non-fiduciary party in interest to plan fiduciaries. We achieved the first appellate court victories upholding the cash balance formula against age discrimination claims and permitting plans to correct costly scrivener’s errors in plan documents.
Billions at stake
For sophisticated clients such as Verizon, GE, IBM, Schering-Plough and UTC, we have successfully defended ERISA claims where the potential exposure ranged from the hundreds of millions to several billion dollars.
Decades of regulatory experience
Our ERISA litigators work seamlessly with our highly skilled ERISA advisory practitioners who bring decades of experience dealing with Treasury and the Department of Labor, as well as a broad range of clients, on emerging issues under ERISA.
Recognized litigation leaders
We have litigated ERISA cases throughout the country. Our ERISA litigators bring to the courtroom litigation skills developed in a range of cases, including jury trials and complex civil litigation, and we are recognized as one of the leading ERISA litigation practices in the country by both Chambers USA and Legal 500.
Verizon pension class action
Defeated an effort by a class of retirees to block Verizon’s purchase of an annuity contract to settle $7.5 billion in pension liabilities.
Xerox plan administrator Supreme Court victory
Secured victory for Xerox in the Supreme Court on the deference owed plan administrators. Coming into the case after an adverse decision in the Second Circuit, and despite vigorous opposition from the Solicitor General, the Department of Labor, and the Internal Revenue Service, we persuaded the Supreme Court that the lower courts erred in refusing to give deference to the plan administrator's reasonable interpretation of the plan made in the course of litigation after his pre-litigation interpretation was held to be mistaken.
Verizon $1.7 billion pension plan error
Obtained a court order for Verizon reforming a $1.7 billion drafting error in a pension plan formula. This was the first court order correcting a scrivener’s error in an ERISA plan.
DuPont plan administrator Supreme Court victory
Secured a unanimous Supreme Court decision holding that DuPont’s plan administrator “did its statutory ERISA duty” when it paid deceased worker’s retirement benefits to his ex-wife, whom he had named as beneficiary in plan documents, even though his ex-wife gave up any interest in the benefits in their divorce decree.
Supreme Court Victory for Harris Trust
Won a Supreme Court victory for our client Harris Trust and secured ruling that ERISA permitted a fiduciary to sue a non-fiduciary party in interest that had participated in a prohibited transaction. Harris Trust and Sav. Bank v. Salomon Smith Barney, Inc., 530 U.S. 238 (2000).
Victory in “Stock Drop” lawsuit
Persuaded Third Circuit to vacate a district court's certification of a class of participants in a "stock drop" lawsuit against our client Schering Plough that alleged breach of fiduciary duty for imprudent retention of a company stock fund in a 401(k) plan. In re Schering Plough Corp. ERISA Litig., 589 F.3d 588 (3d Cir. 2009).
LaRue v. DeWolff, Boberg & Assocs., Inc., 128 S. Ct. 1020 (2008) (counsel for amicus)
The U.S. Supreme Court held that a participant stated a colorable ERISA fiduciary breach claim for losses stemming from the alleged failure to implement investment directions for his 401(k) plan account. In a concurring opinion, Chief Justice Roberts cited our amicus brief for The ERISA Industry Committee in stating that such actions might need to be brought as benefits denial claims and subjected to exhaustion of administrative remedies.
Advised on groundbreaking “pension derisking” transactions involving billions of dollars, including the following:
- Represented 21st Century Fox on a spinoff and termination of its pension plan, including the accompanying group annuity purchase.
- Represented Verizon Communications on its pension plan’s $7.5 billion annuity purchase (one of the largest pension annuitization transactions in U.S. history), and successfully defended Verizon against an attempt by retirees to block the transaction in court.
- Represented Fiduciary Counselors on two pension derisking transactions, each involving a transfer of over $500 million in liabilities to insurance companies.
Conkright v. Frommert
Covington successfully represented Xerox Corporation’s pension plan in this ERISA case in which the Court held that a plan administrator’s reasonable interpretation of the plan is entitled to deference even if the administrator’s initial interpretation was erroneous.
Defending whistleblower claims
Defended claims threatened against a technology company in the US and the UK, involving alleged SOX whistleblower protections and unlawful detriment claims.
ERISA litigation in the Supreme Court
Successfully handled important ERISA litigation in the Supreme Court, including Conkright v. Frommert, 130 S. Ct. 1640 (2010) (requiring deference to the plan administrator’s interpretation of a plan, even though the administrator had previously relied on provisions that were not properly added to the plan), and Kennedy v. Plan Adm’r for Dupont Sav. & Invt. Plan, 129 S. Ct. 865 (2009) (applying ERISA’s “plan document” rule to affirm unanimously a plan administrator’s decision to follow a beneficiary designation that gave rights to a participant’s former spouse, even though a divorce decree had stated that the former spouse gave up her rights).
Fifth Third Bancorp v. Dudenhoeffer
In a unanimous decision, the Supreme Court vacated a ruling that had gone against our client Fifth Third Bancorp in an ERISA case concerning Employee Stock Ownership Plans (ESOPs). The Court held that ESOPs are subject to rules designed to weed out meritless stock-drop cases at an early stage of the litigation.
IndyMac Bank Securities Class Actions
Represented the former CEO of IndyMac Bank in multiple securities and ERISA class actions.
Dismissal of ERISA class action for AK Steel
Secured district court ruling dismissing a putative ERISA class action on the basis of the statute of limitations. Gelesky v. AK Steel Corp. Pensions Agmt. Plan, 828 F. Supp. 2d 935 (S.D. Ohio 2011).
Dismissal of ERISA notice and claims for Verizon
Secured district court dismissal of ERISA notice and fiduciary breach claims against our client Verizon, arising from the spin-off of a business, on the basis of the statute of limitations. Murphy v. Verizon Commc’ns, Inc., 50 Empl. Ben. Cas. (BNA) 1855 (N.D. Tex. 2010).
Favorable settlement for GE
After fully briefing motions to dismiss a suit alleging breach of fiduciary duty under ERISA with respect to the GE stock component of GE’s 401(k) plan, based on a “stock drop” theory, secured settlement that was approved by the court. Cavalieri v. Gen. Elec. Co., 47 Empl. Ben. Cas. (BNA) 2719 (N.D.N.Y. 2009).
Favorable ruling for Verizon in age discrimination suit
For Verizon, in a companion case to a similar claim against Equitable, secured the first favorable ruling in the Second Circuit on claims that cash balance plans violate the age discrimination provision of ERISA. Hirt v. The Equitable Retirement Plan, 533 F.3d 102 (2d Cir. 2008).
Multiple successes for independent contractors
Successfully defended Capital Cities/ABC, GE, the NFL, Verizon, and the Pharmaceutical Research and Manufacturers of America in separate suits against claims that independent contractors were entitled to benefits under company plans.
Representation of IBM in age discrimination suit
In the first appellate ruling on the question of whether cash balance plans are age discriminatory, obtained the Seventh Circuit victory reversing the trial court and holding that IBM’s cash balance plan was not discriminatory. The appellate victory avoided $1.4 billion in damages. Cooper v. IBM Personal Pension Plan, 457 F.3d 636 (7th Cir. 2006).
Secured dismissal of ERISA claims against BNY Mellon
Persuaded plaintiffs to dismiss voluntarily ERISA “stock drop” claims against our client, the independent fiduciary of BNY Mellon Corp.’s employer stock fund, by filing motion to dismiss. In re Bank of New York Mellon Corp. Foreign Exch. Trans. MDL (Sansano v. Fiduciary Counselors) (S.D.N.Y. 2012).
Summary judgment success for UTC
Secured Second Circuit affirmance of a summary judgment ruling in favor of our client United Technologies in a 401(k) plan expense class action lawsuit, for which plaintiffs had calculated alleged damages of $230 million. Taylor v. United Technologies Corp., 354 Fed. Appx. 525 (2d Cir. 2009).
Murphy v. Verizon Communications, Inc., et al.
Covington successfully represented Verizon in an ERISA class action case brought by three retirees claiming the transfer of their pensions to a spin-off company violated various requirements of ERISA. The Fifth Circuit granted summary judgment in favor of Verizon after discovery. When the case grew to a class action, the Fifth Circuit eventually affirmed the dismissal of all claims.
Numerous amicus briefs on behalf of The ERISA Industry Committee
Filed amicus briefs on behalf of The ERISA Industry Committee in a variety of other groundbreaking cases, including Black & Decker v. Nord, 538 U.S. 822 (2003); Lockheed Corp. v. Spink, 517 U.S. 882 (1996); Patterson v. Shumate, 504 U.S. 753 (1992); Hecker v. Deere & Co., 556 F.3d 575 (7th Cir. 2009); Langbecker v. Electronic Data Sys. Corp., 476 F.3d 299 (5th Cir. 2007); and Montesano v. Xerox Corp., 256 F. 3d 86 (2d Cir. 2001).
Taylor v. United Technologies Corp.
Taylor v. United Technologies Corp., 2009 WL 4255159 (2d Cir. Dec. 1, 2009), aff’g 2009 WL 535779, 46 Empl. Ben. Cas. (BNA) 1935 (D. Conn. Mar. 3, 2009). The Second Circuit affirmed the summary judgment entered in favor of our client United Technologies in a 401(k) plan expense class action lawsuit. The court upheld the rejection of all of plaintiffs’ claims concerning a variety of fiduciary decisions over more than a decade, for which plaintiffs had calculated alleged damages of $230 million.
U.S. Department of Labor and Internal Revenue Service Investigations
Resolved contentious investigations by the US Department of Labor and Internal Revenue Service, in which the government took positions that exposed our clients to many millions, and in some cases over $1 billion, of potential liability. In several of these cases, we replaced counsel that was unable to reach agreement with the government, when litigation appeared to be imminent.
Young v Verizons Bell Atl Cash Balance Plan
Young v. Verizon’s Bell Atl. Cash Balance Plan, __ F. Supp. 2d __, 2009 WL 3677350 (N.D. Ill. Nov. 2, 2009). For Verizon, we secured a court order reforming a $1.7 billion drafting error in a pension plan formula. This was the first court order correcting a scrivener’s error in an ERISA plan.
March 13, 2020, Inside Compensation
Consider a situation in which a former employee alleges that he or she did not receive a COBRA election notice. That’s the notice that must be provided to group health plan participants when they lose coverage as a result of certain events, including termination of employment, and that gives the participants information regarding their rights...… Continue Reading
October 15, 2019, Inside Compensation
On July 10, 2019, the Sixth Circuit considered vexing questions of statutory interpretation in an ERISA case. A dispute over whether a transaction bonus plan was an ERISA employee pension benefit plan hinged on the meaning of two terms common in federal statutes: “results in” and “extending to.” While the meaning of the statute was...… Continue Reading
October 8, 2019, Inside Compensation
On August 20, 2019, the Ninth Circuit held in Dorman v. Charles Schwab Corp. that a 401(k) plan’s mandatory arbitration clause was enforceable in relation to a breach of fiduciary duty claim brought under ERISA § 502(a)(2). No. 18-15281 (9th Cir. Aug. 20, 2019). This is the first case in which the Ninth Circuit concluded...… Continue Reading
August 3, 2018, The Wall Street Journal
Richard Shea is quoted in The Wall Street Journal regarding AT&T’s miscalculation and overpayment of retirement benefits. Mr. Shea says that some pension experts have concluded that overpayments essentially never harm plan finances because employers must set aside enough money to cover a lifetime of benefits based on what retirees actually receive. He adds, “The ...
July 16, 2018, Inside Compensation
After a few years of decline, litigation involving 401(k) plans “has surged again recently,” according to a study published by the Center for Retirement Research at Boston College. This is likely not news to 401(k) sponsors and service providers, who are confronted with this reality on a near daily basis. However, the study is a...… Continue Reading
November 4, 2016, Inside Compensation
Our colleague Jason Levy recently published an article in The Actuary Magazine on the Department of Labor’s fiduciary conflict rule. More than six years in the making, this rule represents perhaps the most significant regulation from the DOL during the Obama Administration. The fiduciary conflict rule expands the definition of fiduciary to cover, with ...
July 16, 2015, Inside Compensation
The U.S. Court of Appeals for the Sixth Circuit recently affirmed the crucial importance of accurate plan summaries in the post-Amara world. To date, part of the legacy of CIGNA v. Amara has been an uptick of cases in which ERISA plaintiffs allege a material mismatch between a plan document and a summary plan description...… Continue Reading
July 13, 2015, Inside Compensation
A recent Massachusetts district court decision in In Re Fidelity ERISA Float Litigation highlights the need for ERISA fiduciaries to evaluate the treatment of a particular type of interest called “float income” to ensure compliance with ERISA. The Department of Labor has long taken the position that retention of float income without sufficient disclosures ...
March 24, 2015, Inside Compensation
For sponsors and fiduciaries of employee benefit plans, the Amara case has presented many interesting and important issues that have been discussed at length in this blog and elsewhere. However, the most recent chapter in this long-running dispute has not garnered nearly as much attention as either the Supreme Court or Second Circuit decisions that...… Continue ...
March 24, 2015, Inside Compensation
Not all benefits claims are created equal. At least, not from a risk management perspective. Benefits claims that reach issues applicable to a broad class of participants have the potential to exponentially increase liabilities. Kifafi v. Hilton illustrates this risk. A recent court order quantified the cost of a judgment that Hilton Hotels and its...… Continue ...
March 24, 2015, Inside Compensation
In Lees v. Munich Reinsurance America, Inc., a federal district court in New Jersey recently held that an oral misrepresentation could serve as the basis for a fiduciary breach claim. The plaintiff in Lees worked for American Re-Insurance Company (a predecessor of the defendant), but was being paid by a related entity. Several years into...… Continue Reading
Verizon Wins Challenge to Pension Transfer; Investment Guidelines Need Not Be Disclosed
October 23, 2014, Bloomberg BNA
Covington's Jeffrey Huvelle is quoted regarding his representation of Verizon: “Verizon is pleased that the Fifth Circuit agreed with Judge Fish's well-reasoned decision that Verizon's spinoff complied with ERISA,” Huvelle told Bloomberg BNA on Oct. 15. He added that the document disclosure claims at issue “related to SuperMedia, not Verizon.”
July 10, 2013, Covington E-Alert
June 23, 2010
WASHINGTON, DC, June 23, 2010 — Covington & Burling LLP received 85 individual mentions and 23 practice mentions in the Legal 500 US 2010 edition. Legal 500 reviews the strengths and strategies of law firms in more than 90 countries in Europe, the Middle East, Asia, North and South America, and the Caribbean. Here are the Covington lawyers and practices ...
June 16, 2010
WASHINGTON, DC, June 16, 2010 — Covington & Burling LLP received 112 individual mentions and 44 practice mentions in Chambers USA 2010. The guidebook, which ranks lawyers by state and national practice area, is designed to identify the most skilled legal practitioners based on the qualities most valued by clients. Here are the Covington lawyers and practices ...
May 7, 2010
WASHINGTON, DC, May 7, 2010 — Covington & Burling LLP represented the prevailing parties in Conkright v. Frommert, a significant case in the U.S. Supreme Court concerning the Employee Retirement Income Security Act (ERISA). The Court’s ruling in favor of the Xerox Corporation pension plan and the plan’s administrator has implications for many other ERISA plans. ...
June 12, 2009
WASHINGTON, DC, June 12, 2009 — Covington & Burling LLP received 100 individual mentions and 40 practice mentions in Chambers USA 2009. The guidebook, which ranks lawyers by state and national practice area, is designed to identify the most skilled legal practitioners based on the qualities most valued by clients. Here are the Covington lawyers and practices ...
June 16, 2008
WASHINGTON, DC, June 16, 2008 — Covington & Burling LLP received 81 individual mentions and 45 practice mentions in the newly released 2008 Chambers USA. The guidebook, which ranks lawyers by state and national practice area, is designed to identify the most skilled legal practitioners based on the qualities most valued by clients. Here are the Covington ...
Covington Recognized in More than Twenty Practice Areas in Inaugural Edition of Legal 500 US
9/28/2007
WASHINGTON, DC, September 28, 2007 — In its inaugural year, The Legal 500 US has recognized Covington & Burling LLP’s practice excellence in 23 fields. Compiled in four volumes published in 2007, the Legal 500 US singles out the following practices: Broadcasting and Digital Buyouts: sub-$1b Copyright - regional Copyright Litigation - regional Data ...
September 6, 2007
WASHINGTON, DC, September 6, 2007 — Covington & Burling LLP received 115 individual mentions in 38 areas of law in the 2008 edition of The Best Lawyers in America. This annual compilation of top US lawyers is based on peer-review surveys and is used as a referral guide in the legal profession. The recipients are as follows: Administrative: E. Edward Bruce and ...
June 18, 2007
WASHINGTON, DC, June 18, 2007 — Covington & Burling LLP received 44 practice mentions and 74 individual mentions in the newly released 2007 Chambers USA guidebook. The 2007 edition of Chambers USA attempts to identify the most skilled legal practitioners throughout the country based on the qualities most valued by clients. Covington attorneys have been ...
August 7, 2006
WASHINGTON, DC, August 7, 2006 - The United States Court of Appeals for the Seventh Circuit ruled today that IBM's pension plan formula is both lawful and age-neutral. The decision was the first by a federal appeals court to address the closely-watched question of whether hundreds of "cash balance" pension plans across the country are unlawful under an age ...
- Chambers USA - Recognized nationally as a leading practice in ERISA litigation (2006-2018)
- Chambers USA - Two attorneys recognized among leading individuals for ERISA litigation (2006-2017)
- Legal 500 USA - Recognized as a leading US practice in ERISA litigation (2007-2018)
By clicking on filters, the website automatically displays information related to specific interests.
Example: To find Covington’s representative matters, news, and insights related to product liability and mass tort defense class actions, take the following steps:
- Begin on the Product Liability and Mass Tort Defense practice page
- On the section labeled Use Menu Below to Filter Matters and Results, click the arrow next to Litigation and Investigations under the Practices heading
- On the expanded list, click on Class Actions
- Refreshed information will be displayed under the Representative Matters and News and Insights sections of the page
- To refine the information further, click on Life Sciences under the Industries heading