Allina Health Inks $2.4 Million Retirement Plan Class Settlement

Allina Health System will pay more than $2.4 million to settle a proposed class action claiming it mismanaged its retirement plans, the hospital system told a federal judge in Minnesota.

The deal resolves allegations that Allina abdicated its fiduciary oversight of its two retirement plans. According to the lawsuit, Allina failed to stop plan trustee Fidelity Management Trust Co.—which wasn’t named as a defendant—from filling the plans with expensive mutual funds that earned millions of dollars in revenue-sharing payments for Fidelity.

The settlement amount represents 30% of the lawsuit’s potential damages, according to Oct. 16 court filings.

Dozens of ...