Legal

A former employee, on behalf of 28,000 participants, has sued the retirement services provider over mismanagement of its Teachers Insurance and Annuity Association plan, notably retaining an underperforming fund for 16 years.

Following the sudden departure of its CEO, the health insurer is now facing an employee lawsuit, alleging UnitedHealth reduced its employer contributions to the 401(k) plan by more than $19 million by using forfeited funds from departing employees, an ERISA violation.

The health insurer is accused of using forfeited funds from departing employees to reduce employer contributions to the retirement plan instead of using the funds to reduce administrative fees.

While Wells Fargo and Merrill Lynch paid $60 million for a "cash sweep" violation earlier this year, Morgan Stanley was cleared by the SEC for "sweeping" customers' uninvested cash from a brokerage account into an interest-bearing account.

The health organization's class action lawsuit, filed by an employee alleging the company used forfeited plan funds from departing employees to pay administrative expenses was dismissed, after a federal judge found no fiduciary breach.

Representing 16,000 employees, a former participant in the retirement plan filed a class action lawsuit, alleging the plan's target date funds from American Century Investments should have been replaced.