Two 401(k) plan participants filed a lawsuit against North Memorial Health Care, Robbinsdale, Minn., alleging the organization and its board of directors breached their fiduciary duties in the management of the plan.
The lawsuit, filed July 15 in U.S. District Court in Minneapolis, alleges the organization and its board breached their duties under the Employee Retirement Income Security Act of 1974 by offering investment options that were not in their lowest fee share classes and also charged excessive management fees, according to the court filing.
The suit also alleges that several of the funds offered in the plan had lower-cost, better-performing alternatives available and that the plan's record keeping and administrative costs were "excessive," according to the court filing.
As of Dec. 31, 2020, the North Memorial Health Care 401(k) Plan had $466 million in assets, according to its most recent Form 5500 filing.
Nicholas P. DeMaris, attorney, and Shawn J. Wanta, partner, at Baillon Thome Jozwiak & Wanta, attorneys for the plaintiffs; and officials at North Memorial Health Care could not be immediately reached for comment.