Perelman v. Perelman

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Jeffrey Perelman is a participant in the defined employee pension benefit plan of GRC and alleges that his father, Raymond, as chairman of GRC and trustee of the Plan, breached his fiduciary duties by covertly investing Plan assets in the corporate bonds of struggling companies owned and controlled by Jeffrey’s brother, Ronald. Jeffrey claimed that these transactions were not properly reported; depleted Plan assets; and increased the risk of default, such that his own defined benefits are in jeopardy. The district court dismissed several claims for lack of standing; later granted summary judgment, rejecting all remaining claims; and denied Jeffrey attorneys’ fees and costs under the Employee Retirement Income Security Act, 29 U.S.C. 1132. The Third Circuit affirmed, rejecting arguments that Jeffrey had standing to seek monetary equitable relief such as disgorgement or restitution under ERISA section 502(a)(3) because he suffered an increased risk of Plan default with respect to his defined benefits, and in seeking relief on behalf of the Plan, no showing of individual harm was necessary. The court upheld the denial of attorneys’ fees and costs, rejecting claims that the lawsuit was a catalyst for the voluntary resolution of several issues, including Raymond’s resignation as Trustee. View "Perelman v. Perelman" on Justia Law

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