Prime Healthcare Beats 401(k) Fee, Fund Class Action After Trial

Prime Healthcare Services Inc. prudently managed the investments and administrative fees in its employees’ 401(k) plan, a California federal judge ruled after a five-day trial.

Prime, a health-care company that operates hospitals and clinics in 14 states, prevailed on all claims asserted by a class of workers who challenged their retirement plan’s target date funds and recordkeeping expenses. The workers produced “no credible evidence” that Prime’s process for monitoring plan investments fell below common industry practices, Judge Josephine L. Staton said in a 52-page, post-trial opinion.

Hundreds of employers have been sued over their retirement plan fees in recent ...