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Legal Update

Court Rejects PBGC Position That an Investment Fund Is Part of a Controlled Group for Purposes of Pension Liabilities of a Portfolio Company

8 February 2013
Mayer Brown Legal Update

In late 2012, the US District Court for the District of Massachusetts, in Sun Capital Partners v. New England Teamsters & Trucking Industry Pension ruled that a private equity fund was a not a “trade or business” for purposes of controlled group liability for the unfunded pension liabilities of a portfolio company. In so ruling, the District Court rejected a 2007 contrary opinion from the Pension Benefit Guaranty Corporation.


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