Health & Fitness
Health and Fitness
Health and Fitness
Thu, June 2, 2011
Wed, June 1, 2011
Tue, May 31, 2011 Hagens Berman Applauds Supreme Court ERISA Decision in Cigna Corp. vs. Amara
SEATTLE--([ BUSINESS WIRE ])--Hagens Berman managing partner Steve Berman today applauded the United States Supreme Courta™s 8-0 decision in a case against CIGNA (NYSE:CI) in which pension plan participants claimed CIGNAa™s explanation of its cash balance retirement plan was incomplete and misleading, resulting in losses for the participants.
"These cases are complex and require highly specialized legal counsel"
According to Berman, the courta™s decision will strengthen his firma™s ability to represent pension plan participants who have been harmed as a result of negligence, fraud or misrepresentations of the plan. The firm is investigating companies that converted from pension plans to cash balance plans. If you have information regarding a cash balance plan conversion please click [ here ] to contact attorneys investigating these issues.
aThis case is a significant victory for employees who have little say when employers modify retirement plans, often to the detriment of the workers,a said Berman. aThe courta™s decision will help protect future retireesa™ right to legal redress if their benefits are curtailed, denied or amended.a
The majority opinion, written by Justice Stephen Breyer, found that CIGNA misrepresented the true effect of switching from a defined-benefit plan to a cash-balance plan. As a result, CIGNA saved $10 million annually, but failed to disclose that the risk of falling interest rates was shifted to employees, and employees that retired early received a substantially reduced retirement benefit. The court ruled that relief, including monetary compensation, could be authorized for plan participants who were harmed by the conversion.
Hagens Berman has extensive experience in pension protection cases, which are governed by the Employee Retirement Income Security Act (ERISA) of 1974. This experience includes an appointment as co-lead counsel in the groundbreaking Enron ERISA litigation, which ended in a $220 million settlement for former Enron employees, the largest ERISA settlement to date.
The firm has been recognized for its innovative approach to ERISA cases, pioneering legal strategies and alternative legal approaches to increase the chances of recovery.
Berman noted the importance of hiring experienced legal counsel when pursuing an ERISA claim: aThese cases are complex and require highly specialized legal counsel,a said Berman. aIndividuals who believe their employer may have misrepresented or denied benefits under a retirement plan should take care to hire legal counsel with a proven track record in this area of the law.a
In addition to the firma™s ERISA experience, Hagens Berman has an agile and proven securities practice. The firm recently obtained record settlements in two securities cases, including litigation against Charles Schwab & Co., which resulted in a $235 million settlement for investors, and a case against OppehheimerFunds that settled for over $100 million. According to industry analysts, both cases are among the top six settlements in subprime and credit-crisis related securities litigation.
To learn more about Hagens Bermana™s pension protection practice, click [ here ].
Seattle-based Hagens Berman Sobol Shapiro LLP is a leading class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and [ whistleblowers ]. More information about the firm is available at [ www.hbsslaw.com ].
