Universal Health Inks $12.5 Million 401(k) Deal After Court Loss

Universal Health Services Inc. will pay $12.5 million to resolve litigation challenging its 401(k) plan fees after failing to get the 60,000-person class undone in the Third Circuit, federal court papers filed in Pennsylvania show.

The deal resolves allegations that Universal Health, which operates 400 medical facilities across the country, mismanaged its 401(k) plan by filling it with expensive, actively managed funds. The parties reached an agreement after negotiations with a federal magistrate judge and a private mediator, according to the settlement motion filed Thursday in the US District Court for the Eastern District of Pennsylvania.

The settlement comes two ...