• Supreme Court Finds that Money Damages May be Available for a Misleading SPD
  • May 27, 2011
  • Law Firm: Kaye Scholer LLP - New York Office
  • In a potentially far-reaching decision that contained elements of victory for both plan sponsors and plan participants, a unanimous Supreme Court has reversed and remanded a district court decision that a misleading summary plan description (“SPD”) or other communications to participants can be the basis for reforming a retirement plan to mirror the terms of the SPD. CIGNA Corp. v. Arama, No. 09-804, (2011). The “other shoe” for sponsors was the Court’s finding that equitable relief, including money damages, may be available under Section 502(a)(3) of the Employee Retirement Income Security Act of 1974 (“ERISA”) for such misleading communications.