Community Health Systems Settles 401(k) Principal Funds Lawsuit

Community Health Systems Inc. will pay $580,000 to resolve claims that challenge the Principal Life Insurance Co. target-date funds in its 401(k) plan, ending portions of a proposed class action filed by former employees in a Tennessee federal court.

The deal, announced Dec. 4, will settle Employee Retirement Income Security Act claims against CHS and its retirement plan committee, which were accused of filling the plan with Principal target-date funds that charged an unnecessary and excessive layer of fees.

The hospital system also agreed to cooperate with additional discovery requests related to the plan participants’ claims against Principal, which remain ...