Schlichter Bogard Lawsuit on Behalf of Molina Plan Participants Headed to Trial
As reported on Law360, a California federal court has ruled that a lawsuit brought by Schlichter Bogard on behalf of over 15,000 Molina Healthcare 401(k) plan participants can proceed to trial. In so ruling, the Court rejected Molina’s request for summary judgment, finding that numerous questions should be resolved at trial.
The lawsuit alleges, among other things, that Molina mismanaged its 401(k) plan by including underperforming investment funds and investment options that charged excessive fees. The lawsuit further alleges that Molina caused the plan to invest in flexPATH target date funds, which replaced established and well-performing target date funds used by participants to meet their retirement needs, and that Molina failed to use the plan’s bargaining power to obtain reasonable investment management fees, which financially harmed employees and retirees.