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Joanne Roskey Comments on Supreme Court's Cornell ERISA Ruling and Impact on Employer Litigation Risk in Law360

Subtitle
"High Court's Cornell Ruling Eases Path for ERISA Suits"

Law360

Joanne Roskey, former Deputy Associate Solicitor at the U.S. Department of Labor (DOL) and former Chief of the Division of Health Investigations in DOL's Employee Benefits Security Administration (EBSA), was quoted on the U.S. Supreme Court's unanimous decision in the revival of the Cornell University Employee Retirement Income Security Act (ERISA) case which lowers the pleading burden for plaintiffs alleging prohibited transactions, making it easier to bring suits against retirement plan fiduciaries and potentially increasing litigation risk for employers. Roskey noted that the Court "went out of its way to endorse the Rule 7(a) mechanism when exemptions are raised as an affirmative defense," emphasizing a procedural path for addressing exemptions after a complaint is filed. She added, "It's the court's decision whether to order a reply, but I would think the defendants are going to be asking the court to do it more regularly," signaling a likely strategic shift in how defense counsel respond to these claims.