⁍ AXIS Reinsurance Co cannot seek reimbursement from Northrop Grumman for part of a $16.7 million settlement of a class action by participants in Northrop’s 401(k) plans, a federal appeals court held Monday.

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⁍ The 9th U.S. Circuit Court of Appeals flatly rejected AXIS’ ‘improper erosion of coverage’ theory.

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– An appeals court has ruled in favor of an insurance company that says its 401(k) plan was over-insured by $16.7 million, the San Jose Mercury News reports. According to Westlaw Today, the 9th US Circuit Court of Appeals ruled that AXIS Reinsurance Co can’t seek reimbursement from Northrop Grumman for part of a $16.7 million settlement of a class action by participants in Northrop’s 401(k) plans. AXIS alleged that Northrop’s other insurers improperly triggered its excess coverage tier by improperly paying for a confidential settlement between Northrop and the US Labor Department. The appeals court agreed with a lower court that ruled against AXIS.