A recent crop of proposed class actions targeting employers' insurance-related voluntary benefits offerings — for things like critical illness or hospital indemnity — marks a litigation trend that appears to be gaining, experts say.
The wave of cases alleging employers and their insurance brokers violated the Employee Retirement Income Security Act began in December, ensnaring companies including diagnostic testing giant LabCorp, department store giant Macy's and insurance broker Aon.
"I continue to marvel at the powers of innovation and ingenuity of the plaintiffs' bar to figure out ways to use [the] ERISA statute to bring class action lawsuits, and this is exhibit one of the next new thing of what they're trying," said Gerald L. Maatman, Jr., the chair of Duane Morris LLP's Class Action Defense Group.
Maatman, with Duane Morris, said he expects some more nuanced arguments about ERISA fiduciary duties from the plaintiffs as briefing continues.
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