PPG not liable for a spin-off company’s decision to cut benefits

PPG Industries Inc. won a summary judgment in a federal lawsuit alleging it was liable for maintaining retiree benefits for a company it spun off that later terminated those benefits, says an analysis by Jackson Lewis. The court recognized that taking necessary steps to complete a business transaction – PPG transferring benefits liabilities for its commodity chemicals division to a separate, newly created successor entity – does not trigger PPG’s general fiduciary duties under ERISA, nor create liability for the Pittsburgh-based company.

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