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 NemethJ. 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.
Richard J. PearlRick 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.
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