DaVita Inc. agreed to settle a lawsuit by former employees who accused the company and its fiduciaries of ERISA violations in a 401(k) plan.
The notice of an agreement in principle was filed Oct. 30 in a U.S. District Court in Denver by attorneys representing plaintiffs and defendants in the case of Teodosio et al. vs. DaVita Inc. et al. The plaintiffs are seeking class-action status.
No terms were announced for the agreement, which was reached through mediation. Details will be presented to the court, which must approve a settlement, by the end of the year.
The plaintiffs sued in March 2022 and later amended the complaint. The plaintiffs accused the defendants of charging excessive record-keeping fees and offering certain investments that were more expensive than comparable investment in the marketplace.
In July 2023, a federal judge in Denver allowed the record-keeping claim to go to trial but dismissed the investment allegation.
The DaVita Retirement Savings Plan, Denver, had assets of $2.75 billion as of Dec. 31, 2022, according to the latest Form 5500.
