麻花传媒

UnitedHealth Group Agrees to $69 Million Settlement in ERISA Class Action Lawsuit

Posted on February 11th, 2025 at 2:07 PM
UnitedHealth Group Agrees to $69 Million Settlement in ERISA Class Action Lawsuit

From the desk of Jim Eccleston at 麻花传媒

UnitedHealth Group has agreed to pay $69 million to resolve a class action lawsuit alleging violations of its fiduciary duties under the Employee Retirement Income Security Act of 1974 (ERISA). The settlement, believed to be the largest ever for an ERISA case involving poorly performing 401(k) investment options, ends three years of litigation in Snyder v. UnitedHealth Group, et al.

The lawsuit, filed in April 2021 by former UnitedHealth employee Kim Snyder, alleged that UnitedHealth imprudently retained the Wells Fargo Target Fund Suite in its 401(k)-investment menu despite its poor performance. InvestmentNews reports that the funds significantly underperformed six benchmarks over 11 years, yielding lower cumulative and annualized returns than comparable options.

The suit claimed UnitedHealth prioritized its corporate relationship with Wells Fargo, a major financier and customer, over its fiduciary duty to plan participants. Specifically, it alleged that UnitedHealth executives, including CFO John Rex, intervened to keep the underperforming Wells Fargo funds in the 401(k) plan. These actions, the plaintiffs argued, breached ERISA’s standards of loyalty and prudence.

According to InvestmentNews, this landmark settlement underscores the importance of fiduciary diligence in selecting and monitoring 401(k) investment options. It also highlights the legal risks of prioritizing corporate relationships over participant interests. ERISA requires fiduciaries to act solely in the best interests of plan participants and to make prudent, loyalty-driven decisions regarding investment options.

 

麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

November 4, 2025
FINRA Suspends Former Morgan Stanley Advisor Over $180,000 in Improper Transfers

The Financial Industry Regulatory Authority (FINRA) suspended former Morgan Stanley advisor C.J. Kline for two years and imposed a $5,000 fine for allegedly executing more than $180,000 in improper fund transfers between his personal and brokerage accounts.

November 3, 2025
Former Florida Broker Pleads Guilty in $2.7 Million Investment Fraud and PPP Loan Scheme

Former Florida broker Jared Dean Eakes, 34, of Jacksonville, has pleaded guilty to wire and bank fraud in connection with a $2.7 million investment scam and a separate scheme involving over $4.75 million in fraudulent Paycheck Protection Program (PPP) loans, according to U.S. Attorney Gregory W. Kehoe for the Middle District of Florida.

October 31, 2025
Department of Labor Sued Over Illegitimate Deferred Compensation Opinion Letter

Three former Morgan Stanley advisors filed suit this week against the U.S. Department of Labor (DOL), claiming the agency exceeded its authority and was unduly influenced when it issued an advisory opinion that sought to undermine their deferred compensation claims.