Skip to main content

Alexis M. Herman, Secretary of Labor, United States Department of Labor v. Arthur Goldstein and Medco Administrators, Ltd.

2nd CircuitSeptember 7, 2000No. 2000Cited 6 times
Plaintiff WinMedco Administrators, Ltd.$9,525,493.16 awarded
Facing something similar at work?Check your rights — free, private, no sign-up

Case Details

Judge(s)
Kearse, Jacobs, Straub
Status — whether other courts must follow this ruling
Published
Procedural Posture — the stage the case had reached
appeal

Related Laws

No specific laws identified for this ruling.

Claim Types

Breach of Contract

Outcome

The Department of Labor prevailed in its ERISA violation claim against Medco Administrators and Arthur Goldstein. The appellate court affirmed the district court's judgment finding defendants violated ERISA by unlawfully withholding employer contributions as self-determined fees and ordered disgorgement of over $9.5 million plus interest.

What This Ruling Means

**What Happened:** The U.S. Department of Labor sued Medco Administrators, Ltd. and its owner Arthur Goldstein for illegally taking money from employee benefit plans. Medco was supposed to manage these plans, which included health insurance and retirement benefits for workers. Instead of properly handling the funds, Goldstein and his company kept millions of dollars that belonged to employee benefit plans, claiming they were entitled to these amounts as fees for their services. **What the Court Decided:** The court ruled against Medco and Goldstein, finding they violated federal law (ERISA) by unlawfully taking over $9.5 million from employee benefit funds. The appellate court upheld a lower court's decision, ordering the defendants to pay back the full amount plus interest. This was a complete victory for the Department of Labor. **Why This Matters for Workers:** This ruling protects workers' benefit plans from being raided by dishonest administrators. It shows that companies managing employee benefits cannot simply help themselves to workers' money by calling it "fees." When employers or benefit administrators steal from these funds, federal law provides strong protections, and workers can recover their money through government enforcement actions.

This summary was generated to explain the ruling in plain English and is not legal advice.

Browse Related

Facing something similar at work?

Court rulings like this one are useful, but every situation is different. Take 2 minutes to see which laws may protect you — it's free, private, and no account is required to start.

This ruling information is sourced from public court records via CourtListener.com. Case outcomes, claim types, and summaries are extracted using AI analysis and may be incomplete or inaccurate. It is provided for informational and educational purposes only and does not constitute legal advice.

See something wrong, or named in this ruling and want it corrected or redacted? Request a correction.