Class of Over 15,000 Current and Former 401(k) Participants Represented by Schlichter Bogard Certified in Lawsuit Against Molina Healthcare, Inc.
As reported by Law 360, a California federal judge has awarded class certification to over 15,000 Molina Healthcare, Inc. (“Molina”) workers in a lawsuit brought by Schlichter Bogard & Denton for alleged mismanagement of their 401(k) plans. The underlying plan at issue, a defined contribution, individual account, employee pension benefit plan, has amassed over $731 million in assets with over 15,686 participants.
Originally filed on March 18, 2022 before the United States District Court for the Central District of California, the lawsuit—styled Mills v. Molina Healthcare Inc.—alleges, among other things, that Molina caused the plan to invest in flexPATH untested target date funds, which replaced established and well-performing target date funds used by participants to meet their retirement needs. The complaint further alleges that Molina “failed to use the plan’s bargaining power to obtain reasonable investment management fees, which caused unreasonable expenses to be charged to the plan,” financially harming participant employees.
Read about other cases handled by Schlichter Bogard & Denton here.