A U.S. District Court judge in Covington, Ky., dismissed a complaint by a 401(k) plan participant against CommonSpirit Health and plan fiduciaries on alleged ERISA violations in plan management.
The plaintiff alleged that the hospital services corporation allowed "unreasonable" expenses and provided an inadequate selection of investment options, including those with higher fees and worse performance than comparable investments, according to the complaint filed in July 2020.
"Plaintiff has not alleged facts from which the court can infer imprudent conduct on the part of the defendants," U.S. District Court Judge David L. Bunning wrote on Sept. 8. "Thus, plaintiff has failed to state a claim under ERISA and defendants' motion to dismiss is granted."
The lawsuit argued that total investment fees were higher than average, but the judge deemed the argument "insufficient to plead a claim that defendants violated the fiduciary duty of prudence" in the case of Smith vs. CommonSpirit Health et al. CommonSpirit also is known as Catholic Health Initiatives.