Duane Morris Class Action Review - 2023 - Report - Page 191
The significant ERISA decisions in 2022 can be grouped in several categories,
including: (i) rulings on motions to dismiss class action claims; (ii) motions to compel
arbitration and enforce class action waivers; (iii) challenges to fail-safe classes; (iv)
rulings granting class certification over standing and related challenges; (v) rulings
granting certification of modified classes due to standing issues; and (vi) other class
certification decisions.
A.
Rulings On Motions To Dismiss Class Action Claims
In 2022, federal courts frequently addressed motions to dismiss ERISA class action
complaints for failure to state a claim under Rule 12(b)(6). Although these rulings do not
directly address class certification, they are central to both sides’ litigation strategy and,
as a practical matter, can be outcome determinative. A loss for the defendant at this
stage will open the door to extensive and costly discovery. Capitalizing on that prospect,
the plaintiffs’ bar will often seek to settle the matter quickly for less than the defendants’
costs to defend the class action.
Claims concerning breaches of the fiduciary duties of prudence and loyalty represent
the largest category of ERISA class actions. These claims generally allege one or more
theories, such that defendants chose poor investments, that they retained
underperforming actively-managed funds, that they charged excessive recordkeeping
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© Duane Morris LLP 2023
Duane Morris Class Action Review – 2023
