DaVita Inc. will pay $2 million to settle a lawsuit by former employees who said the company and its 401(k) plan fiduciaries violated ERISA by mismanaging the plan.
Attorneys for the plaintiffs disclosed the class-action settlement's terms in a document filed Jan. 16 in a U.S. District Court in Denver. The settlement was achieved through mediation, and the terms must be approved by the court.
The plaintiffs sued in March 2022 and later amended the complaint. They 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 Denver federal judge allowed the record-keeping claim to go to trial but dismissed the investment allegation in Teodosio et al. vs. DaVita Inc. et al.
The parties announced an agreement in principle in October, saying terms would be announced at a later date.
"The proposed settlement provides plaintiffs with a guaranteed and immediate recovery" rather than risk the cost and time of going to trial, the settlement document said. "Defendants deny that they ever engaged in any wrongful conduct."
DaVita Retirement Savings Plan, Denver, had $2.8 billion in assets as of Dec. 31, 2022, according to the latest Form 5500.