Molina, Flexpath Defend 401(k) Fund Swap Victory in 9th Cir.

A class action challenging a redesign of Molina Healthcare Inc.'s retirement plan was properly rejected based on the plaintiffs’ failure to show any losses to the plan, the company said in a Ninth Circuit brief.

The plan participants’ appeal attempts to “conjure a legal issue” about which party has the burden of showing that actions by 401(k) fiduciaries caused loss to the plan, Molina said. But this question only arises if the participants show that a loss actually occurred, which they failed to do in this case given the comparatively strong performance of the plan investments being challenged, Molina told ...