Mayer Brown achieved a significant legal victory on behalf of the Board of Directors for the Motion Picture Industry Pension Plans (Board) and fifty of its current and former Individual Directors in a class action lawsuit brought under the Employee Retirement Income Security Act of 1974 (ERISA). The United States District Court for the Central District of California granted the defendants' motion for summary judgment on all of Plaintiff Patricia Klawonn’s claims. Mayer Brown’s Matt Moscon argued the motion on behalf of the defendants in September 2024.
The lawsuit alleged that the Board and its Individual Directors breached their fiduciary duties by imprudently selecting and monitoring the plan's investments. Klawonn, a former employee in the Motion Picture Industry, claimed that the plan's alleged underperformance constituted a breach of the duty of prudence under ERISA.
Chief United States District Judge Dolly M. Gee presided over the case and issued the ruling. The court found that Klawonn's claims for prospective relief were moot due to her retirement and subsequent cash-out from the plan. Furthermore, the court concluded that the defendants did not breach their fiduciary duty. The court noted that the plan's underperformance was insufficient to support a claim of imprudence.
The team was led by partners Nancy Ross and Matt Moscon, and assisted by partners Jackie Vallette and Mike Menssen, and associates Malori Fery, Jordan Hilton, and Daisy Gray.
The case is Patricia Klawonn v. Board of Directors for the Motion Picture Industry Pension Plans, et al.