A New Year and a New Wave of ERISA Litigation
ERISA litigation continues to expand in unprecedented fashion, reshaping the landscape for employers, plan sponsors, and service providers. As we move into 2026, all indications suggest that this trend will accelerate. Four lawsuits filed in late December may represent the beginning of a significant new wave of cases. These four suits, filed by plaintiff’s firm Schlichter Bogard LLC, allege violations of ERISA Section 502 (29 U.S.C. §§ 1132(a)(2) and (a)(3)) attacking the purported high costs of voluntary benefits insurance — including accident-only, critical illness, hospital indemnity, and cancer insurance. In particular, the complaints assert that defendants, acting as fiduciaries, breached their duties in managing and administering these voluntary benefit insurance programs, which are covered by ERISA . The allegations include failure to monitor and identify lower-cost benefit options for employees and engaging in prohibited transactions through the payment of ex...