Cigna Workers Advance 401(k) Forfeiture, Stable Value Fund Suit

Cigna Group was ordered to defend a proposed class action claiming it mismanages its employees’ retirement plan by offering a flawed stable value fund and wrongly using forfeited 401(k) contributions for its own benefit.

The plaintiff plan participants pointed to other stable value funds that fared better than Cigna’s, which is enough to move forward with fiduciary breach claims under the Employee Retirement Income Security Act, Judge John Milton Younge said Tuesday.

Younge explained that the Third Circuit—which has authority over his courtroom in the US District Court for the Eastern District of Pennsylvania—has endorsed without specifically adopting the “meaningful ...