Chamber Opposes ERISA Class Actions Covering Thousands of Plans

The Chamber of Commerce urged the Fifth Circuit to curb “multi-thousand-plan” class actions accusing benefit plan service providers of violating the Employee Retirement Income Security Act.

The Chamber is supporting Texas-based Fringe Benefit Group and its subsidiaries, which want the Fifth Circuit to undo an August ruling certifying a class action covering about 90,000 employees covered by 3,500 different benefit plans administered by the company. The suit claims Fringe Benefit manipulated these plans to pay itself excessive and unauthorized fees.

But the case shouldn’t have received class status, because participants in one plan lack standing to vindicate the ERISA claims ...