Bronson Healthcare Settles an ERISA Lawsuit For $3 Million
Bronson Healthcare Group Inc. and its board of directors have entered into an agreement to settle a lawsuit accusing them of allowing excessive administrative and investment fees in the organization’s 403(b) plan.
The lawsuit covered a period from 2015 to 2019 and alleged that, during that time, the plan’s fees were excessive when compared with other 403(b) and 401(k) plans offered by sponsors that had similar numbers of plan participants and similar amounts of money under management. The plaintiffs alleged that the defendants failed to regularly monitor the plan’s retirement plan service fees and that they failed to regularly solicit quotes and/or competitive bids from covered service providers to avoid paying unreasonable fees for retirement plan services.
The lawsuit also challenged the use of the actively managed Fidelity Freedom target-date fund (TDF) series versus the index version of the TDF suite.
