Schlichter Bogard Files Pioneering Lawsuits Targeting Fiduciary Misconduct in Employee Voluntary Benefits Programs
As reported in several media outlets, Schlichter Bogard has filed a series of class action lawsuits alleging significant breaches of fiduciary duties related to voluntary employee benefits programs. The lawsuits are the first of their kind, and the first to target fiduciary wrongdoing related to critical illness, accident, and other similar insurance programs.
The complaints are asserted against four employers – United Airlines, Community Health Systems, Universal Services of America, and Labcorp – along with Gallagher, Mercer, Lockton, and Willis Towers Watson. In each case, Plaintiffs represented by Schlichter Bogard allege that fiduciaries failed to satisfy their duties to act in employees’ best interests, and instead selected insurance options with excessive fees and unreasonable broker commissions.
Schlichter Bogard Co-Managing Partner Andrew Schlichter stated as follows:
“Those responsible for employees’ health benefits have a legal duty to act solely in the interests of the workers they serve. If an employer offers critical illness, accident, or other similar insurance, it has a legal obligation to put workers’ interests first. The goals of this litigation are to hold fiduciaries to that duty, to ensure that workers’ interests are put first, and to protect workers from being gouged when they sign up for the insurance that serves as a critical lifeline in the event of a serious illness or injury.”
For additional information about Schlichter Bogard’s financial products and services practice, please contact us at 800-USE-LAWS (873-5297) or via email at contact@uselaws.com
