June 13, 2025
The U.S. Supreme Court revived retirement plan mismanagement allegations against Cornell University, the Sixth Circuit restarted a yacht company’s suit against its health benefits administrator and American Airlines took a hit for emphasizing socially conscious investing in its 401(k) plan decisions.
Here are five important decisions that came down in Employee Retirement Income Security Act cases during the first half of this year.
. . .
6th Circ. Makes Waves with Yacht Co. Ruling
A Sixth Circuit panel’s decision to revive a Michigan yacht company’s allegations that a third-party administrator mishandled out-of-network claims got noticed by benefits lawyers, given that employers are facing a rising number of lawsuits alleging excessive health fees.
A three-judge panel on May 21 reversed the February 2023 dismissal of Tiara Yachts Inc.’s suit against Blue Cross Blue Shield of Michigan alleging BCBSM overpaid health claims from out-of-state providers and then later claimed savings from collecting the overpayments, breaching fiduciary duties.
The panel concluded that a lower court erred in holding that the boat company’s allegations over the billing practices of its self-funded health plan administrator were outside the reach of ERISA. By showing BCBSM retained control over plan assets, the yacht company had plausibly alleged fiduciary duties under ERISA were implicated in its allegations that BCBSM overpaid providers, the panel found.
The decision has already appeared in supplemental briefing in other ERISA health fee litigation disputes, and has caught the eye of several plaintiffs-side attorneys, including Kai Richter, of counsel at Cohen Milstein Sellers & Toll PLLC.
“I think it is a significant win, and I think it should send a chill down the spine of anyone who’s profiteering from excess health care expenses,” Richter said.