Sequoia Benefits & Insurance Services LLC defeated a proposed class action claiming it takes improper kickbacks from a multiple employer welfare arrangement, when the Ninth Circuit ruled Wednesday that the plan participants hadn’t established standing to sue.
The plaintiffs, current and former employees of a company enrolled in Sequoia’s Tech Benefits Program, argued that they had standing because they suffered an injury based on their “equitable” ownership interest in the program’s trust fund.
The US Court of Appeals for the Ninth Circuit rejected this theory, citing the US Supreme Court’s 2020 decision in Thole v. US Bank NA, which ...
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