ERISA Fiduciary Law Series: Part 2

ERISA Prohibited Transactions

This video series on ERISA Fiduciary Law highlights current ERISA issues in the Courts, Congress, or at the DOL. The Courts have been flooded with complex ERISA cases and resolutions to some involved large settlements.  Congress continues to pass legislation affecting employee benefit plans requiring plan sponsors to act.  And the DOL has certain enforcement and regulatory initiatives in the pipeline.  Jose M. Jara, counsel at Fox Rothschild, LLP, will guide you on ERISA topics by discussing in depth with special guests from the insurance industry to provide their insights for mitigating risks.

In this video, Jose’s first industry guest is Lawrence Fine, Management Liability Coverage Leader at Willis Towers Watson.  They will discuss the intricacies of ERISA’s prohibited transaction provisions and a Federal Circuit Court split that has developed in terms of alleging a prohibited transaction claim.

You can watch the video below, and keep an eye out in the coming weeks for more installments of this series.

View Part 1 here.

Footnote:

UPDATE: PETITIONS TO THE SUPREME COURT

Cunningham et al. v. Cornell University et al.  – Participants filed a petition for certiorari on the following question: Whether a plaintiff can state a claim by alleging that a plan fiduciary engaged in a transaction constituting a furnishing of … services … between the plan and a party in interest, as proscribed by 29 U.S.C. § 1106(a)(1)(C), or whether a plaintiff must plead and prove additional elements and facts not contained in the provision’s text.

On April 5, 2024, Cornell University waived its right to respond.  However, on April 18, 2024, the Supreme Court asked Cornell University to respond to the petition.

AT&T Services, Inc., et al., v. Bugielski, et al. – On April 5, 2024, AT&T Services, Inc., and the plan’s Investment Committee filed a petition for certiorari on the following question: Whether a fiduciary to an employee benefit plan causes the plan to engage in a prohibited transaction under Section 406(a)(1)(C) of the ERISA by entering a routine, arm’s-length agreement for plan services.

Meet the Speakers

Jose Jara, Esq.

José M. Jara is Counsel in the Employee Benefits Department of Fox Rothschild, LLP, and focuses his practice on ERISA litigation and counseling.  He has defended fiduciaries and boards of directors against ERISA class action litigation alleging breach of fiduciary duty, including imprudent investments, excessive fees, and valuation issues in Employee Stock Ownership Plans. Mr. Jara’s practice also includes representing clients under investigation by the U.S. Department of Labor (“DOL”) regarding civil and/or criminal violations of ERISA. He was formerly a complex claims director for a major international insurance company and a senior pension law specialist with the DOL’s Employee Benefits Security Administration. He is currently the Group Chair of the Employee Plans and Executive Compensation Group of the American Bar Association and a graduate of the Georgetown University Law Center.

Lawrence Fine

Lawrence Fine is the Management Liability Coverage Leader for Willis Towers Watson’s FINEX North America division, with prior experience at law firms and an insurance carrier. He has more than 30 years’ legal and insurance industry experience, particularly in relation to Directors and Officers Liability, Professional Liability, Employment Practices Liability, and Fiduciary Liability.

Professional Experience

Prior to joining Willis Towers Watson, and after working at two law firms, Larry spent 27 years at AIG where he was responsible for all U.S. commercial D&O, fiduciary liability, employment liability and non-tech professional liability claims. For several years Larry was also Global Head of Professional Liability and D&O Claims at AIG. In his role as Claims Chief Technical Officer, Larry also helped write all of AIG’s Financial Lines policies and many endorsements which are still in use.

In his role at WTW, Larry provides Thought and Product Leadership in connection with D&O and fiduciary exposures, utilizing his voluminous experience working on complex and high exposure claims to provide unique insight to our clients. Larry provides clients with his coverage analyses, recommends litigation strategies, and uses his deep network of insurance executives, defense counsel, coverage counsel and mediators to leverage successful resolutions for our clients.

Speaking Engagements/Publications

Larry has spoken concerning directors and officers liability, lawyers liability, securities law, ERISA, employment and insurance issues at conferences sponsored by the Professional Liability Underwriting Society (PLUS), the Practicing Law Institute (PLI), Bloomberg, Thomson Legalworks, Director’s Roundtable, the Association of Enrolled Actuaries, the American Conference Institute (ACI), Directorship/Directorship.com, the FICC (Federation of Insurance and Corporate Counsel) and others. Larry has been published in diverse publications, including the Rutgers Law Review, Directorship Magazine, Legalworks ERISA Litigation Conference Handbook (Thomson), Pension Plan Investments: Confronting Today’s Issues (PLI), Securities Litigation Report, The Market Standard and Analog Science Fiction/Science Fact.