Prime Healthcare Sued Again Over 401(k) Fees, Investment Options

California’s Prime Healthcare Services Inc. is facing another federal lawsuit over the fees and investment options in its $880 million 401(k) plan, after four former employees filed a proposed class action less than a month after the health company was hit with similar claims.

The latest suit, filed Sept. 11 in the U.S. District Court for the Central District of California, accuses Prime and top executives of mismanaging the plan by filling it with expensive, actively managed mutual funds without properly investigating cheaper and better performing alternatives. The Prime defendants also failed to use the plan’s large size as leverage ...