UnitedHealth Group Inc., Minnetonka, Minn., was denied a movement to dismiss a fiduciary lawsuit filed by a 401(okay) plan participant alleging the well being group breached its ERISA fiduciary duties within the oversight of its target-date funds.
The lawsuit filed by Kim Snyder in U.S. District Court docket in Minneapolis alleged the group, its board of administrators, funding committee and worker advantages plans administrative committee breached their fiduciary duties beneath the Worker Retirement Revenue Safety Act of 1974 by persevering with to supply target-date funds managed by Wells Fargo Asset Administration regardless of underperformance. WFAM, now generally known as Allspring World Investments, isn’t a defendant within the lawsuit.
UnitedHealth Group had filed a movement to dismiss, saying the plaintiff had did not sufficiently plead that the target-date funds underperformed the benchmarks proven within the authentic grievance and sure benchmarks utilized by the plaintiff weren’t significant, in response to the Dec. 2 court docket submitting.
Choose John R. Tunheim of the U.S. District Court docket in Minneapolis mentioned in his Dec. 2 order that the plaintiff has plausibly pleaded imprudence by UnitedHealth and the committees as a result of she supplied an sufficient variety of benchmarks demonstrating the target-date funds had chronically underperformed.
“We’re happy with the court docket’s ruling,” mentioned Charles Discipline, associate at Sanford Heisler Sharp, the plaintiff’s legal professional, in a information launch. “Our factual allegations had been backed up by 33 tables with knowledge that confirmed every of the Nicely (sic) Fargo Funds chronically underperformed six completely different benchmarks over the course of 11 years.”
As of Dec. 31, the UnitedHealth Group 401(okay) Financial savings Plan had $17.2 billion in property, in response to its most up-to-date Kind 5500 submitting.
UnitedHealth Group spokesman Eric Hausman couldn’t be instantly reached for remark.