Molina Healthcare Workers Appeal 401(k) Loss Causation Decision

Molina Healthcare Inc. workers called on the Ninth Circuit to revive litigation over their retirement plan’s investment options, saying the opinion handing them a post-trial defeat sets an “impossibly high bar” for employees challenging mismanagement.

The workers proved they suffered losses by producing evidence that the plan’s Flexpath target date funds underperformed the Vanguard funds they replaced by more than $9 million, they said in a brief filed Thursday in the US Court of Appeals for the Ninth Circuit. The district judge who rejected their case after a 6-day trial incorrectly ruled to the contrary, and he wrongly failed to ...