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March 12 (Bloomberg) — Novant Health Inc. employees are suing the nonprofit hospital system for allegedly overcharging them in their retirement accounts by millions of dollars, according to a complaint filed today that highlights how workers’ savings are eroded by high fees to financial firms.

In the latest of more than a dozen lawsuits against employers since 2006, a retired doctor and six others are alleging Novant’s plan saw a more than 10-fold increase in fees over three years and contains costly investment choices, according to a complaint filed today in federal court in Greensboro, North Carolina. The lawsuit also highlighted ties between the hospital and a brokerage, D.L. Davis & Co., whose founder Derrick L. Davis gave more than $5 million in charitable gifts to Novant, after which he earned fees from the plan.

 

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