Sponsors and fiduciaries of health and welfare plans should be aware of a recently filed class-action lawsuit against alleged fiduciaries of a health plan. It challenges health-plan fiduciary oversight and reasonableness of fees similar to actions against fiduciaries of defined-contribution retirement plans. The action highlights the importance of establishing and documenting prudent fiduciary processes for making decisions on behalf of health and welfare plans.
ERISA Class-Action Litigation over Fees in Health and Welfare Plans
By J. Christian Nemeth and Richard J. Pearl on December 11, 2018
Tags: 401(k), 403(b), Atrium, Brotherston v. Putnam, class action litigation, Employee Benefits Security Administration of the Department of Labor, Employee Retirement Income Security Act of 1974, ERISA, fee reasonableness, fiduciary process, fiduciary-breach claims, health plans, health-plan fees, health-plan fiduciary oversight, MedCost, non-exempt prohibited transactions

J. Christian (Chris) Nemeth provides legal counsel on complex commercial litigation and government investigations, including ERISA matters, financial and banking cases, business torts and breach of contract actions. Chris is the Co-Chair of the Firm’s ERISA Litigation group and works closely with the Firm’s Employee Benefits department on all types of Litigation matters, Department of Labor investigations and similar issues. Read Chris Nemeth's full bio.

Rick Pearl focuses his practice on litigation involving the Employee Retirement Income Security Act of 1974 (ERISA). He represents companies, their benefits committees, plan administrators, fiduciaries, and service providers in complex, class-action litigation and Department of Labor lawsuits, audits, and investigations. His particular expertise is with actions for breach of fiduciary duty and prohibited transactions. Read Rick Pearl's full bio.
Related Posts
- ERISA Health Plan Fiduciaries Defeat DOL’s Excessive Fee Claims
- Workers’ Abortion Privacy at Risk as Texas Targets Employer Aid
- Federal Court Certifies Class in Multiple-Plan ERISA Challenge to Health-Plan and Retirement-Plan Fees
- Your Fiduciary Responsibilities and 403(b) Plan Litigation
- A Light in the Dark: Seventh Circuit Helps Clarify New Pleading Standards for 401(k) Fee Cases
BLOG EDITORS
STAY CONNECTED
TOPICS
ARCHIVES
RECENT POSTS
- GOP Calls Biden’s Medicare Plans a Tax Hike on Small Businesses
- The Bosses May Be Back in Charge (but Not as Much as They Think)
- Coverage of COVID-19 Vaccines and the End of the COVID-19 Emergency
- NLRB Attacks Non-Disparagement and Confidentiality Clauses in Employee Releases, Severance Agreements
- District Court Vacates Provisions of No Surprises Act Final Rule

