executive compensation, benefits & erisa: news
11 Years’ War
March 1, 2014 -- The American Lawyer
The American Lawyer published the feature story "11 Years' War," which chronicled Herrick's successful defense of DataTreasury, a Long Island-based electronic check imaging patent holder, in two significant litigations. In the first, we defended the founder, chief executive officer, and general counsel of DataTreasury in a $15 billion lawsuit filed by a purported investor. In the second, we helped DataTreasury prevail in a 10-year, $100 million litigation with the company's former chief operating officer, who had sued over the value of 1.5 million stock options.
Heard Off the Street: Fidelity Investors Feel Shortchanged
January 24, 2014 -- The Pittsburgh Post-Gazette
Herrick partner Jason D’Angelo was quoted in the Pittsburgh Post-Gazette article “Heard Off the Street: Fidelity investors feel shortchanged.” The article analyzes recent class action lawsuits brought on behalf of Fidelity employees against Fidelity, alleging violations of fiduciary duties in connection with Fidelity’s 401(k) plan. In the article, Jason explains that U.S. Labor Department regulations allow mutual funds and other financial services companies to offer their own products and services to their employees, and that the cases will likely hinge on whether Fidelity acted prudently in analyzing and selecting investment options, and whether the fees were reasonable.
Herrick Helps DataTreasury Prevail in 10-Year, $100M Litigation With Former COO and Director
October 30, 2013
We successfully represented DataTreasury Corporation – a company founded on Long Island, which owns patents covering technology for the electronic imaging of checks - in litigation brought by plaintiff Michael Trimarco against his former employer. Mr. Trimarco had sued the company in 2003, claiming that he was entitled to the value of 1.5 million stock options which had been granted to him in 2002, and which he had asserted were worth more than $100 million.
American Airlines' Last-Mover Disadvantage
November 30, 2011 -- Bloomberg Businessweek
Stephen Selbst notes that all the major airlines -- except American -- reduced their wage-and-benefit costs years ago by having sought bankruptcy protection. Stephen says American and its parent company should have filed half a decade ago, on the heels of filings by Delta and Northwest. By filing now, after its competitors strengthened themselves by lowering direct and indirect employment costs, a bankrupt American is facing stronger competition.
401(k) fear: Can workers' stock decisions figure in layoffs?
December 26, 2010 -- USA Today.com
Employees who sell shares of company stock from their 401(k) plans are immune from retribution if they follow the rules of the plan, Fred Green says in a Q&A. Companies that establish 401(k) plans that seek to comply with ERISA Section 404(c) cannot even find out whether employees are selling company stock, whereas the plans that do not seek to comply with 404(c) allow employers to monitor -- but not act on -- employees' sales of such stock.
Court reinstates Visteon retiree benefits
July 13, 2010 -- Reuters
Stephen Selbst says the Third Circuit's ruling in Visteon, which prohibited the bankrupt auto parts manufacturer from eliminating retirees' health and life insurance benefits, might go up to the Supreme Court. Stephen said this is the kind of case the Supreme Court is prone to hearing because it has a significant societal layer and because the various federal circuits are divided on the larger issue of whether bankruptcy discharges companies' obligations to pay retirees' benefits.
Chernin's Reel Deal
February 24, 2009 -- CNBC's Closing Bell
In a live segment opposite a major shareholder, Carol Goodman analyzes the package that News Corp's No. 2 executive will receive upon leaving the company. Carol acknowledges that the raw numbers are robust but notes that the deal was made in a far better economy and that News Corp received great value from his services.
Negotiating Your Severance Package
November 24, 2008 -- ExecuNet's CareerSmart Advisor
Carol Goodman is quoted on the best ways for executives to negotiate severance packages.
What if GM goes broke?
November 19, 2008 -- MSN Money
Stephen Selbst is quoted on the possible impacts of a bankruptcy filing by General Motors, including diminution of wages and pension payments.
Executive Compensation: Who Should Decide?
May 29, 2007 -- CNBC
Carol Goodman, live on network television, analyzes what roles the government and corporate boards of directors and compensation committees should have in determining executive compensation.
April 19, 2007 -- Forbes.com
Carol Goodman discusses on Forbes’ financial video program MoneyMasters why boards of directors are more qualified than shareholders to make compensation decisions.