Foley & Lardner LLP

Defense of ERISA Claim in Relation to Separation Program

Defended a first tier automotive supplier on ERISA claims raised by 90 former employees who signed separation agreements and received certain severance benefits as part of a reduction in force. The plaintiffs alleged that the employer violated ERISA’s fiduciary duty requirements by allegedly misleading the participants as to the precise nature and terms of the severance benefits plan. Plaintiffs also claimed that their releases either were void because they were procured by fraud, or that their claims were outside the scope of the release language in the separation agreements. Prevailed on a motion to dismiss, and also convinced the court to award the employer attorneys’ fees pursuant to the fee-shifting provision in the separation agreements signed by all 90 plaintiffs. The case is now on appeal in the Sixth Circuit.