Court Nixes Putative Class’s Claim Alleging Voluntary Appeals Need ‘Full and Fair Review’

Prudential Insurance Co. of America persuaded the U.S. District Court for the Eastern District of New York Nov. 12 to partially dismiss a putative class action alleging that Prudential’s voluntary appeals procedure for denied benefit claims does not comply with the Employee Retirement Income Security Act (DaCosta v. Prudential Ins. Co. of Am.).

Judge Joanna Seybert dismissed the putative class’s claim that ERISA requires a “full and fair review” of any appeal an insurer undertakes, regardless of whether ERISA mandates the appeal. According to the court, the text of ERISA Section 503 only covers mandated appeals. “[N]othing ...