Former employees of North Memorial Health Care on Jan. 24 dropped their ERISA lawsuit against the operator of hospitals and clinics and its 401(k) plan fiduciaries, closing litigation that started in July 2022 with criticism of investment selection and costs and record-keeping fees.
The plaintiffs gave no reason for withdrawing the complaint in the case of Keller and Smith vs. North Memorial Health Care et al. in the notice submitted to a U.S. District Court in St. Paul, Minn., by attorneys representing defendants and plaintiffs.
The parties waived their rights to appeal.
The lawsuit alleged that overall fees were "unreasonable," some mutual funds should have been in lower-price share classes, some funds charged excessive management fees and some funds performed worse than similar funds in the marketplace.
The North Memorial Health Care 401(k) Plan, Robbinsdale, Minn., had assets of $482 million as of Dec. 31, 2022, according to the latest Form 5500.
