The lawsuit, filed April 2021, alleges USPI allowed excessive fees for recordkeeping services and did not offer lower-cost share classes of mutual funds. The class action was brought by 16,605 employees who formerly participated in USPI’s 401(k) plan from April 30, 2015, to Dec. 31, 2018.
Pending court approval, the settlement includes a $5,000 award for each of the five named plaintiffs and allocates one-third of the settlement for attorney fees.
According to court documents, USPI has denied all wrongdoing but agreed to settle the case to avoid the cost and uncertainty of further litigation.
According to the settlement, each class member’s share of the settlement will be based on their account balance during the class period, with a minimum payment threshold of $5. Additionally, an independent fiduciary will review and approve the settlement to ensure it aligns with ERISA’s requirements and serves the best interests of plan participants.
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