Hunter v. Berkshire Hathaway, Inc.
Plaintiffs, including Chief Financial Officer Judy Hunter and other current or retired employees of Acme Building Brands, Inc. (Acme), sued Acme and its parent company, Berkshire, Hathaway, Inc. (Berkshire). They alleged that Berkshire coerced Acme into reducing 401(k) matching contributions and implementing a pension plan freeze, which they claimed violated Section 5.7 of a merger agreement and constituted breaches of fiduciary duties under ERISA. Defendants filed a Motion to Dismiss, arguing that the merger agreement did not clearly grant unalterable lifetime benefits and that Acme acted as a plan settlor, not a fiduciary. The Court, citing legal precedents, determined that the agreement's language was ambiguous regarding benefit duration and that Acme did not act in a fiduciary capacity when amending the plans. Additionally, the Court found the plaintiffs' alternative breach-of-contract claim to be preempted by ERISA. Consequently, the Defendants' Motion to Dismiss was granted, and all Plaintiffs' claims were dismissed with prejudice.