A federal judge overseeing a putative class action againstPrudential Insurance Co. has ruled that the companyviolated ERISA by using interest-bearing bank accounts to hold lifeinsurance money instead of paying beneficiaries directly.
US. District Judge Joseph F. Leeson Jr. of the Eastern Districtof Pennsylvania granted the plaintiffs’ motion for summary judgmenton their claim that Prudential breached its fiduciary duty underthe Employee Retirement Income Security Act.
Leeson denied summary judgment motions from both sides onthe issue of whether Prudential violated ERISA’s prohibitedtransactions provision, allowing that claim to be litigatedfurther.
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P.J. D'Annunzio
Reporter at the Legal Intelligencer covering public corruption, federal courts, and breaking news.
