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ARTICLE · 01 JUNE 2026

Fourth Circuit Closes Door On Third Party ERISA And WARN Act Class-Wide Liability

Duane Morris LLP
Duane Morris LLP
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A unanimous Fourth Circuit panel affirmed dismissal of a putative class action against a private equity firm, ruling that federal courts lack jurisdiction to impose liability on parties voluntarily dismissed from earlier litigation.

United StatesLitigation, Mediation & Arbitration
Gerald Maatman, Jr.
Gerald Maatman, Jr.
Rebecca S. Bjork
Rebecca S. Bjork
Olga Romadin
Olga Romadin
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Duane Morris Takeaways: On May 26, 2026, a unanimous panel of the U.S. Court of Appeals for the Fourth Circuit issued an opinion affirming a federal district court’s dismissal of a putative class action alleging violations of the Worker Adjustment and Retraining Notification (“WARN”) Act and the Employee Retirement Income Security Act (“ERISA”) in Tony Messer v. Garrison Investment Group, LP, No. 25-1657, 2026 WL 1465139 (4th Cir. May 26, 2026). Citing a 1996 U.S. Supreme Court decision, the Fourth Circuit ruled that the plaintiffs could not pursue a private equity firm they had voluntarily dismissed from their earlier suit for a judgment against their former employer because the district court had no jurisdiction over the firm.

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