Centene Hit With Proposed Class Suit Over 401(k) Plan Management

Centene Corp. is facing a federal lawsuit by a proposed class of employees who say the health-care company mismanages their retirement plan by overpaying for administrative services.

The lawsuit, filed Wednesday in the US District Court for the Northern District of California, challenges Centene’s relationship with two Fidelity entities that provided recordkeeping and investment advisory services to the plan. This conflicted arrangement led to hidden and excessive fees that increased workers’ per-person costs, according to the complaint.

Plaintiff Victoria Clark also objects to how Centene handled the 401(k) contributions forfeited by departing employees. Instead of using this money to ...