A federal judge in Omaha, Neb., has dismissed an ERISA lawsuit against Nebraska Methodist Health System Inc., saying plaintiffs failed to prove a violation of fiduciary duty in the management of a 401(k) plan.
"The plaintiffs do not state claim for breach of fiduciary duty of prudence and this claim will be dismissed," wrote Chief U.S. District Court Judge Robert F. Rossiter Jr. in a Wednesday opinion addressing allegations that plan executives chose some poor-performing investments and failed to replace them.
The judge also rejected the allegation that the defendants failed to monitor plan fiduciaries in the case of Fitzpatrick et al. vs. Nebraska Methodist Health System Inc. et al.
Three former employees sued the health-care system, its board of directors and its investment committee in January 2023, seeking class-action status.
The Nebraska Methodist Health System Defined Contribution Retirement Plan, Omaha, had assets of $661 million as of Dec. 31, 2021, according to the latest Form 5500.