Two defined contribution plan participants filed a class-action lawsuit against Barnabas Health Inc., West Orange, N.J., and its investment committee, alleging fiduciary breaches in their oversight of the plans' investment options lineups.
The lawsuit, filed in U.S. District Court in Camden, N.J., on Sept. 23, alleges the company and its committees breached their fiduciary duties under the Employee Retirement Income Security Act of 1974 by failing to ensure each investment option selected for the plan was prudent, and also by maintaining certain options when similar funds were available with lower fees and better performance histories, according to the court filing.
Among the specific allegations by the plaintiffs Marcia L. McGowan and Traci M. Singer are that the company and investment committee breached their fiduciary duties by offering actively managed investment options that had higher expense ratios than the median expense ratios in their associated categories.
As of Dec. 31, 2018, the RWJBarnabas Health 401(k) Savings Plan and the RWJBarnabas Health 403(b) Savings Plan had $1.4 billion and $848 million in assets, respectively, according to the company's most recent Form 5500 filings.
Mark K. Gyandoh, partner at Capozzi Adler, attorney for the plaintiff, declined to comment beyond the filing.
Barnabas Health spokeswomen Carrie Cristello and Ellen Greene could not be immediately reached for comment.