Bronson Healthcare Sued Over Retirement Plan’s Fidelity Funds

Michigan’s Bronson Healthcare Group Inc. was sued in federal court by two former employees who say the company mismanaged its $737 million retirement plan by failing to rein in administrative fees or swap out expensive investment options for cheaper and better-performing alternatives.

The proposed class action, filed Thursday in the U.S. District Court for the Western District of Michigan, accuses the Bronson plan fiduciaries of failing to monitor the plan’s administrative fees, which allegedly ballooned to $81 per person, per year. These fees were unreasonable under the Employee Retirement Income Security Act, because a prudent fiduciary of a similarly sized ...