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Both Sides Claim Victory After Ruling in Rare 401(k) Fee Trial

May 22, 2020, 5:58 PM

Both sides in a dispute over high record-keeping fees in a 401(k) plan are claiming victory this week, despite a ruling ordering Banner Health to pay its participants $2.3 million for mismanaging the plan.

Dozens of cases challenging high record-keeping fees in retirement plans are filed every year, but most settle before they ever make it to trial. Defense attorneys were happy to see a rare one play out and result in a ruling that struck down multiple claims.

This is substantially a defense verdict, said Meaghan VerGow, a partner at O’Melveny & Myers LLP, who represents plan sponsors...

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