Fiduciary duty and litigation

Lewandowski v. J&J dismissed for lack of redressability

Originally posted by

Last week, two of Ann Lewandowski’s three complaints against Johnson & Johnson were dismissed for lack of redressability.

This case, like so many ERISA cases, lives and dies on standing. In order to get to the merits of a case, a plaintiff must have:

1. An injury in fact that is concrete, non-hypothetical, particularized, and actual or imminent;
2. That was caused by the defendant;
3. That would be redressable by judicial relief.

Judge Quraishi found that the claims were not likely to be remedied by the court because Ms. Lewandowski would have hit her MOOP anyway.

Had Ms. Lewandowski only had one claim for one overpriced drug that plausibly came in under the MOOP of managed appropriately, the claim could have proceeded.

It’s important to advisors and plan sponsors to understand that J&J didn’t prevail on the facts of their plan operation, but rather that the court found the case to be brought by the wrong plaintiff.

Rosa Parks wasn’t just on the bus on that famous day, she was on that bus for the specific purpose of becoming a plaintiff that would bring a perfect case to challenge segregated seating on buses.

Even if Ms. Lewandowski’s fiduciary duties claims end here, I believe there will be additional plaintiffs pursuing clarity in the law here and plan sponsors should govern themselves accordingly.

Originally posted on LinkedIn, where the discussion and source links live in the comments.

About the author

Chris Vanderwolk is Director of Compliance and Innovation at OneDigital | Kistler Tiffany Benefits General Agency, where he helps brokers and employers navigate the regulatory complexity of employee benefits. An ERISA attorney with more than 19 years in the benefits industry, he specializes in translating what the law actually requires into language people can use.

All writing