Home Health-Care Provider Sued Over $466 Million Retirement Plan

Home health-care company LHC Group Inc. was sued in federal court by two former employees who say the company’s $466 million retirement plan offers expensive, actively managed funds while paying excessive fees to third-party service providers.

The proposed class action, filed Jan. 20 in the US District Court for the Southern District of West Virginia, claims the plan’s per-person administrative costs grew steadily over the past several years without any corresponding increase in services. These unreasonable fees “directly resulted” from the company’s choice to use high-cost mutual fund share classes that paid revenue to service providers, instead of cheaper, identical ...