To Tell the Truth : Does ERISA Immunize an Employer from Liability for Fraudulent Misstatements About an Employee Benefit Plan (94-1471)

Varity Corporation V. Charles Howe, Robert Wells, Ralph W Thompson, Patrick Mousel, On Behalf Of Themselves And As Representatives Of A Class Of Persons Similarly Situated, And John Altomare, Charles Barron, Alexander Charron, Charlotte Chiles, Anita Crowe, Ray Darr, Doris Guidicessi, Barnett Lucas, Robert Skromme, And The Estate Of Walter Smith, IndividuallyDOCKET No. 94-1471ARGUMENT DATE:NOVEMBER 1, 1995FROM: THE EIGHTH CIRCUITVarity Corporation made material misstatements to induce employees to transfer to new subsidiary that would assume responsibility for their healthcare benefits. After the subsidiary failed, some of the transferees who lost healthcare benefits sued under ERISA and got the benefits restored. At issue is whether plan participants can sue for injuries sustained personally, as opposed to injuries sustained by a benefits plan, and, if so, whether Varity's misstatements violated ERISA