Dalton

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF CALIFORNIA 10 CONNOR DALTON, et al., No. 2:22-cv-00847-DJC-DMC 12 Plaintiffs, 13 v. ORDER 14 FORREST C. FREEMAN, et al., 15 Defendants. 16 Defendant Alerus has moved for an order directing Plaintiffs to file a Rule 7 Reply. In the operative First Amended Complaint, Plaintiffs bring a cause of action under section 406 of the Employee Retirement Income Security Act (“ERISA”) against Defendant Alerus. (FAC (ECF No. 67) at 25–27.) This cause of action, typically called a “prohibited transactions” claim, alleges that Defendant Alerus engaged in a transaction prohibited by ERISA when it approved the transfer of plan assets between the plan and a party in interest. (Id. ¶¶ 204–209.) Notably, the relevant portion of ERISA is structured such that section 406 completely prohibits transactions between a plan and a person in interest where the transaction transfers plan assets, while the later section 408 provides numerous

1 This matter is taken under submission without oral…