Big Wins & Big Deals

In a multi-year federal investigation, a company risked massive ERISA penalties from a legacy merger. The issue centered on the loss of grandfathered health plan status under the Affordable Care Act (ACA), with claims dating back over a decade. Initial exposure exceeded $300 million. Hall Benefits Law (HBL), experts in ERISA and benefits, intervened to contest the government’s stance, resolve compliance complexities, and navigate a rigorous review. Their efforts cut liabilities by hundreds of millions, bolstered compliance, and offered M&A due diligence lessons.

Post-merger, the company inherited health plan compliance problems. The Department of Labor (DOL) argued grandfathered status was lost in 2011 due to plan design and contribution changes violating ACA rules. Penalties could hit $320 million, with a likely $30–35 million settlement. Added risks included COVID-19 testing reimbursements, mental health parity under the Mental Health Parity and Addiction Equity Act, and Voluntary Employees’ Beneficiary Associations (VEBAs) funding. Federal scrutiny from DOL and possibly the Department of Justice (DOJ) endangered the merged entity’s stability. Prior counsel’s bleak outlook—deeming the case hopeless—spurred the company to seek specialized help. Without it, the merger would impose unmanaged liabilities, unprotected by the purchase agreement.

HBL’s approach was multi-pronged. They recast “tobacco surcharges” as wellness rewards, eroding fine grounds. Analyzing plan documents and changes, they crafted strong defenses. Executives were prepped for DOL and DOJ interviews via issue-spotting and mock sessions, fostering confident responses. HBL attributed some faults to third-party administrators (TPAs), pushing for shared blame. They secured limited fixes, like spot-checks and improved VEBA reporting, documented to show good faith.

Results were profound: Penalties dropped from hundreds of millions to a small fraction. DOL endorsed HBL’s views on tobacco incentives and TPA roles. The client’s benefits director praised the prep as unmatched. The company gained robust compliance, enabling admin transfer to a major carrier by 2026.

Kang Haggerty represented the whistleblower in a False Claims Act (FCA) qui tam case that resulted in a $2 million settlement with Recovery Centers of America (RCA), a drug and alcohol rehabilitation facility. The settlement resolves allegations that RCA mishandled controlled substances in violation of the Controlled Substances Act (CSA) and billed the government for inadequate treatment services in violation of the FCA. The whistleblower and RCA also settled an anti-retaliation claim brought under the anti-retaliation provision of the FCA for an additional $450,000, plus litigation costs and attorney’s fees. This case underscores the vital role whistleblowers play in protecting both patients and taxpayers in the wake of rampant healthcare fraud throughout the United States.

Team Members Involved: Kandis L. Kovalsky, Edward T. Kang, and Ross M. Wolfe

Ashley Larson and Katie Johnson obtained a favorable jury verdict for their retail client following trial in Broomfield County District Court. The plaintiff and her family were shopping at a retail store and completed multiple transactions at different locations throughout the store, resulting in confusion over whether merchandise had been paid for. When employees asked for the receipt, the plaintiff refused, escalated the incident, and an altercation ensued. The plaintiff alleged that she was injured by the defendant’s employees, causing injuries to her shoulder and cervical spine. The defendant admitted liability, asserted that the plaintiff was comparatively negligent, and disputed that the incident caused the plaintiff’s alleged injuries.

At trial, the plaintiff asked the jury to award her $2.5 million dollars, including $470,000 in past medical expenses related to five shoulder surgeries and a cervical spine fusion. She also claimed cognitive communication deficit secondary to anesthesia, and ongoing pain and suffering and permanent impairment.

The jury agreed with the retailer and found plaintiff 40% comparatively negligent. The jury awarded plaintiff $10,000 in past medical expenses, $75,000 for noneconomic damages, and no impairment. The award was reduced to $51,000 for the plaintiff’s comparative fault. The award was less than the retailer’s statutory offer of settlement three months before trial.

Team Members Involved: Katie Johnson and Ashley Larson

Walsworth secured a defense verdict for a large insurance carrier after a five-week jury trial in Palm Springs Superior Court, led by Partners Helen Luetto and Elizabeth Huynh and Senior Paralegal Penny Gutierrez. The case involved a policyholder who sued the insurer for breach of contract, breach of the implied covenant of good faith and fair dealing, elder abuse, and violations of Business and Professions Code section 17200 and sought punitive damages. The lawsuit stemmed from two alleged water-loss incidents at a Palm Springs, California residence which occurred in 2018. The plaintiff claimed the insurer failed to timely and fully pay claims which caused the plaintiff significant personal and financial harm. The lawsuit lasted for more than five years, and the plaintiff was represented by many attorneys. A settlement was never a viable option in light of the plaintiff’s demands.

Team Members Involved: Helen Luetto, Partner; Elizabeth Huynh, Partner; and Penny Gutierrez, Senior Paralegal

In a recent matter, a publicly traded corporation engaged QPWB to conduct an internal investigation stemming from a whistleblower complaint. The allegations touched multiple areas of concern – including employment law, corporate governance, accounting practices, and regulatory compliance applicable to publicly traded entities. Leveraging our national footprint and integrated practice group model, QPWB quickly assembled a cross-office, cross-disciplinary team of attorneys. Over the course of the investigation, the firm interviewed more than 20 individuals, ranging from frontline employees to executive leadership, including the General Counsel, CFO, CTO, CIO, and CEO. Our team performed a comprehensive review of the company’s Code of Business Conduct and Ethics, Employee Handbook, SEC disclosures, internal accounting methodologies, and other relevant corporate records. Following our findings, we presented a detailed report and strategic recommendations directly to the company’s Board of Directors.

Team Member Involved: Anthony Varbero, Partner

In a complicated and contentious wrongful death case arising out of a major upgrade project at LAX airport with complicated legal disputes between numerous parties with multiple cross complaints, and with various parties facing OSHA and criminal prosecution, our team prevailed on a Motion for Summary Judgment for our client that served as the Project Manager. On November 26, 2025, the Court held, in a 14-page ruling, that Plaintiffs could not establish, as a matter of law, that our client owed any legal duty to the decedent, and therefore our client cannot be held liable for the claims asserted against it. The Firm is now working to have judgment entered and to defeat the various cross complaints because under well-established California law, that ruling is also dispositive of any indemnity-based theories.

Team Members Involved: Sean Andrade, Managing Partner; Steve Masterson, Partner; Eric Mason, Partner and Maite Colon, Senior Counsel

Managing Partner, Michael Andreou, Esq., obtained dismissal on summary judgment of all claims against our client in this premises liability action. The Plaintiff, a butcher at a King Kullen supermarket, alleged that he sustained significant injuries when he slipped and fell due to a wet condition on the floor in a meat freezer unit in the store. The plaintiff claimed our client, a commercial refrigeration company that serviced the store, was negligent in its servicing at the location, thus causing the slippery condition. After eliciting a strong record of evidence and testimony throughout the course of discovery, the Court granted our summary judgment motion holding that our client did not owe the plaintiff a duty of care as a non-contracting third party—and that none of the Espinal exceptions applied to impose liability. The Court also dismissed all cross claims for indemnification and contribution asserted by the property owner.

Team Member Involved: Michael Andreou, Managing Partner

Sanders Roberts, LLP successfully represented famed hip hop producer “Metro Boomin” aka Leland T. Wayne (“Mr. Wayne”), one of the most renown music producer of today, in a civil sexual assault case. Plaintiff, Vanessa LeMaistre claimed that Mr. Wayne sexually assaulted her in 2016 after she consumed alcohol and a Xanax pill in his studio. LeMaistre claimed she “blacked out” and woke up to the assault, and that the encounter resulted in a pregnancy that she terminated. She also alleged the incident was referenced in the lyrics of the 2017 song “Rap Saved Me,” which Mr. Wayne produced. Plaintiff decided to file suit against Mr. Wayne in October 2024 based on a plan that she concocted in 2024 while under the influence of Ayahuasca, a known hallucinogen. Our client vehemently denied Plaintiff’s clearly fabricated claims that the jury also saw right through. After a three day trial, an eight person jury deliberated for less than an hour before unanimously finding for Mr. Wayne on all four counts of sexual battery and related claims. The defense team was led by Sanders Roberts, LLP Partners Lawrence C. Hinkle, Justin H. Sanders, and Associate Bobby L. Daniels, Jr. They were pleased to restore Mr. Wayne’s good name and reputation.

Team Members Involved: Justin Sanders, Lawrence Hinkle and Bobby Daniels