Successor May Be on Hook for Pension Withdrawal

Via Bna.com,

By Lisa Nagele-Piazza, bna.com

July 27, 2015

An employer’s corporate successor may be responsible for its $661,978 in multiemployer pension fund withdrawal liability under a theory of successor liability, even though the employer withdrew from the fund after it sold its assets, the U.S. Court of Appeals for the Seventh Circuit ruled July 27.

The U.S. Supreme Court and the Seventh Circuit have imposed successor liability in employment-related contexts when the successor had notice of the claim prior to the acquisition and there was “substantial continuity in the operation of the business before and after the sale.”

Read the full article.

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