According to numerous financial networks, United Health Group has agreed to pay $69 million to settle a class-action lawsuit alleging breaches of fiduciary duties under the Employee Retirement Income Security Act of 1974.
The litigation, initiated in April 2021, centered on claims that United Health retained a poorly performing suite of target-date funds, the Wells Fargo Target Fund Suite, on its 401(k)-investment menu.
According to the plaintiffs, the decision to keep these funds was influenced by United Health’s financial relationship with Wells Fargo.
United Health has rejected the allegations and maintains its selection and monitoring processes complied with ERISA standards.
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