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CIGNA Comes Up Short Again;
Court Grants Reformation, Surcharge

Dec. 26, 2012, 5:00 AM

The U.S. District Court for the District of Connecticut Dec. 20 again ruled that reformation and surcharge are appropriate equitable remedies for CIGNA Corp.'s violations of the Employee Retirement Income Security Act’s notice obligations (Amara v. CIGNA Corp., D. Conn., 3:01-cv-02361-JBA, 12/20/12).

This latest decision came in response to the U.S. Supreme Court’s 2011 ruling that the district court erred when it issued remedies under ERISA Section 502(a)(1)(B) because nothing in that provision permits courts to change or reform plan terms (94 DLR AA-1, 5/16/11; 99 DLR AA-4, 5/23/11).

Relying on guidance from...

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