Michelle C. Yau

B-K Lighting Inc. ESOP Litigation

Chea v. Lite Star ESOP Committee, et al. (E.D. Cal.): Cohen Milstein is representing participants in the Lite Star employee stock option plan in a putative ERISA class action. Plaintiff alleges that Prudent Fiduciary Services and Miguel Paredes, on behalf of the Lite Star ESOP, improperly negotiated and purchased 100% of B-K Lighting stock from Douglas W. Hagen, the chairman of B-K Lighting, for over $25 million, an overly inflated price, in violation of ERISA. Plaintiff also claims that the company’s board of directors and members of the ESOP Committee breached their fiduciary duties to the ESOP and that Prudent Fiduciary Services and Miguel Parades have permitted the Hagen Family defendants to continue to operate B-K Lighting as their personal piggy bank.

CITGO Pension Plan Litigation

Urlaub, et al. v. Citgo Petroleum Corporation, et al. (N.D. Ill.): Cohen Milstein represents a certified class of participants and beneficiaries of the CITGO Petroleum Corporation Salaried and Hourly Employees Pension Plans, who allege CITGO violated ERISA by applying outdated mortality tables to the CITGO Plans to determine the value of joint and survivor annuities, resulting in married retirees receiving less than the actuarial equivalent of the benefit that ERISA protects. On October 4, 2024, the Court granted preliminary approval of a $10 million settlement.

Casino Queen ESOP Litigation

Hensiek v. Board of Directors of CQ Holding Company, Inc., et al. (S.D. Ill.): Cohen Milstein represents ESOP participants who allege that the Board of Directors of CQ Holding Company, Inc. and related defendants violated ERISA when they created an ESOP to buy their Casino Queen stock for $170 million, a significantly inflated price. In late 2021, the Seventh Circuit directed Defendants to voluntarily dismiss their appeal on the arbitration issue on the heels of our precedent-setting victory before the Seventh Circuit in Smith v. GreatBanc Trust Company, which cited an exception to the Federal Arbitration Act that permits a court to overrule an arbitration agreement if it blocks a party from being able to bring claims under federal law. As of June 28, 2023, the Court referred the case to mediation and stayed the case pending resolution of the mediation.

Envision Management Holding, Inc. ESOP Litigation

Harrison v. Envision Management Holding, Inc. Board of Directors, et al. (D. Col.): Cohen Milstein represents Envision Management Holding ESOP participants, who allege the ESOP purchased Envision Management Holding stock at an inflated price, causing a multi-million-dollar loss to the ESOP. On February 9, 2023, A three-judge panel for the Tenth Circuit, in a 41-page published opinion, sided with Plaintiffs' argument, which was backed up by a U.S. Department of Labor amicus brief, that an arbitration provision tucked in Envision workers' ESOP plan impermissibly blocked remedies under ERISA, triggering an exemption in the Federal Arbitration Act, which permits a court to overrule an arbitration agreement if it blocks a party from being able to bring claims under federal law. On October 10, 2023, the U.S. Supreme Court denied Defendants’ petition to review the Tenth Circuit’s decision, thereby affirming the lower court’s March 24, 2022 ruling, which denied Defendants’ motion to compel arbitration.

GWA, LLC 401(k) Profit Sharing Plan Litigation

Andrew-Berry, et al. v. Weiss (D. Conn.): Cohen Milstein represents participants in the GWA, LLC 401(k) Profit Sharing Plan who allege that GWA, LLC and George A. Weiss breached their fiduciary duties and misused employee retirement plan assets to further their own pecuniary interest, in violation of ERISA. Specifically, plaintiffs allege that 100% of the Plan’s investments (all of which are 401(k) assets) were and continue to be invested in “The Weiss Funds,” which includes the company’s flagship hedge fund named the “Weiss Multi-Strategy Partners Ltd.” and the company’s mutual fund named the “Weiss Alternative Multi-Strategy Fund,” which generally “replicates” the hedge fund’s strategy.

IBM Personal Pension Plan Litigation

Knight v. International Business Machines Corporation, et al. (S.D.N.Y.): Cohen Milstein represents participants and beneficiaries of the IBM Personal Pension Plan, who allege that the IBM Personal Pension Plan uses outdated mortality tables to determine the value of joint and survivor annuities, resulting in married retirees receiving less than the actuarial equivalent of the benefit that ERISA protects in violation of ERISA.

Intel Minimum Pension Plan Litigation

Berkeley v. Intel Corporation et al (N.D. Cal.): Cohen Milstein represents a putative class of pension plan participants and beneficiaries, who allege that the Intel Minimum Pension Plan utilized outdated mortality tables to determine the value of joint and survivor annuities, resulting in married retirees receiving less than the actuarial equivalent of the benefit that ERISA protects.

Johnson & Johnson Prescription Drug Litigation

Lewandowski v. Johnson and Johnson (D.N.J.): Cohen Milstein represents participants in Johnson & Johnson’s Group Health Benefits Plan in a putative ERISA class action, accusing the pharmaceutical giant of mismanaging its own health plans’ prescription drug program, costing employees millions of dollars in the form of higher payments for prescription drugs, higher out-of-pocket costs and co-pays, and, ultimately, lower wages in violation of ERISA.

Litigio ESOP de Western Milling

Resumen de la Demanda Esta demanda, Zavala v. Kruse-Western Inc. et al., presentada en nombre de los participantes y beneficiarios del Plan de Propiedad de Acciones para Empleados de Western Milling (“ESOP”), alega numerosas violaciones de la Ley de Seguridad de los Ingresos de Jubilación de los Empleados Retirados (“ERISA”) en relación con la venta […]

Luxottica Group Pension Plan Litigation

Duke v. Luxottica U.S. Holdings Corp., et al. (E.D.N.Y.): Cohen Milstein represents Luxottica pension plan participants in a lawsuit, alleging that the plan used outdated mortality tables to determine the value of participants’ joint and survivor annuities, resulting in married retirees receiving less than the actuarial equivalent of the benefit that ERISA protects.

Nationwide Savings Plan Litigation

Sweeney, et al. v. Nationwide Mutual Insurance Company, et al. (D. Mass.): We represent participants and beneficiaries of the MassMutual Thrift Plan in a class action against Massachusetts Mutual Life Insurance and other fiduciaries responsible for managing the MassMutual Thrift Plan, a defined contribution retirement plan. Plaintiffs allege that MassMutual and other fiduciaries engaged in self-dealing in violation of ERISA, cost its employees tens of millions of dollars in retirement savings.

Southern Company Pension Plan Litigation

Drummond, et al. v. Southern Company, Inc., et al. (N.D. Ga.): Cohen Milstein represents participants and beneficiaries of the Southern Company Pension Plan, alleging that the Southern Company Pension Plan uses outdated mortality tables to determine the value of joint and survivor annuities and the amount it charges retirees for pre-retirement survivor annuities, resulting in married retirees receiving less than the actuarial equivalent of the benefit that ERISA protects.

WBBQ ESOP Litigation

Lloyd, et al. v. Argent Trust Company, et al. (S.D.N.Y): Cohen Milstein represents participants and beneficiaries of the W BBQ Holdings, Inc. Employee Stock Ownership Plan, who allege that the trustee of the WBBQ ESOP, Argent Trust Company and the company’s owner, and controlling managers and shareholders breached their fiduciary duties, causing the ESOP to engage in transactions that are prohibited under ERISA and in connection with the sale of the company to the ESOP for an inflated purchase price that far exceeded its fair market value.

Wells Fargo Health Plan Litigation

On July 30, 2024, Plaintiffs, who are members of the Wells Fargo & Company Health Plan filed a putative class action against Wells Fargo and senior executives who oversee the Wells Fargo & Company Health Plan for breaches of fiduciary duties and engaging in prohibited transactions while managing the health plan in violation of ERISA. […]

Western Global Airlines ESOP Litigation

Burnett v. Prudent Fiduciary Services, LLC, et al. (D. Del.): Cohen Milstein represents employees in challenging the valuation of Western Global Airlines at approximately $1.3 billion, based on the sale of 37.5% of the company to the ESOP for $510 million. On March 8, 2023, the Court adopted the Magistrate Judge’s January 25, 2023 recommendation to dismiss Western Global Airlines motion to enforce arbitration. On August 15, 2023, the Third Circuit denied defendant's appeal and refused to enforce arbitration, backing the lower court's decision.

Western Milling ESOP Litigation

Zavala v. Kruse-Western Inc. et al. (E.D. Cal.): We represent participants and beneficiaries of the Western Milling Employee Stock Ownership Plan, who allege that the ESOP’s trustees breached their fiduciary duties by engaging in risky investments in violation of ERISA, including purchasing 100% of Kruse-Western, Inc. company stock, which was valued at approximately 90% of the purchase price for several years after the ESOP Transaction.

New York Life Insurance Company 401(k) Litigation

Krohnengold v. New York Life Insurance Company (S.D.N.Y.): Cohen Milstein represented employees and agents of New York Life Insurance in this certified class action against New York Life for allegedly mismanaging its 401(k) and engaging in corporate self-dealing and the prohibited transfer of employees’ retirement assets. Plaintiffs claim that New York Life impermissibly invested participants investments into a Fixed Dollar Account by default and improperly favored and included its own in-house investment funds in its plans, thereby earning New York Life and its affiliates windfall profits. On July 18, 2024, the Court granted final approval of a $19 million settlement - approximately 25% of the alleged losses.

T. Rowe Price 401(k) Litigation

Feinberg v. T. Rowe Price Group Inc. et al. (D. Md.): Cohen Milstein represented participants in the T. Rowe Price 401(k) plan, who alleged that plan fiduciaries violated ERISA, causing plan participants to pay millions of dollars in illicit fees. Plaintiffs alleged that T. Rowe Price only offered it’s own in-house investment funds in the 401(k), failed to offer the lowest cost versions of those funds, and failed to consider funds from other companies that offered lower fees or better performance. On July 6, 2022 the Court granted final approval of a $7 million settlement.

Triad Manufacturing, Inc. ESOP Litigation

Smith v. GreatBanc Trust Company, et al. (N.D. Ill.): Cohen Milstein represented participants and beneficiaries in the Triad Manufacturing ESOP who alleged that the ESOP's trustees breached their fiduciary duties in connection with the sale of Triad Manufacturing to the ESOP. In September 2021, the Seventh Circuit, in a precedent-setting decision, cited an exception to the Federal Arbitration Act that permits a court to overrule an arbitration agreement if it blocks a party from being able to bring claims under federal law. On August 23, 2023, the Court granted final approval of a $14.8 million settlement and granted class certification.

Wells Fargo 401(k) Litigation

Becker v. Wells Fargo & Co., et al. (D. Minn.): Cohen Milstein achieved a $32.5 million settlement prior to class certification and expert discovery. On August 31, 2022, the Court granted final approval of the settlement, resulting in a recovery of 40% of estimated damages for the plaintiffs. The lawsuit alleged that Wells Fargo and its affiliates violated numerous provisions of ERISA by breaching their fiduciary duties and engaging in self-dealing transactions prohibited under ERISA.

World Travel ESOP Litigation

Ahrendsen et al. v. Prudent Fiduciary Services. et al. (E.D. Pa.): Cohen Milstein represented a certified class of employee stock option plan participants and beneficiaries who allege that the founders of World Travel and the ESOP trustees created the ESOP and then sold 100% of the employees World Travel stock to the ESOP at an above-market price, saddling it with over $200 million in debt. On June 22, 2023, the Court granted plaintiffs unopposed motion for class certification and final approval of a $8.7 million settlement.