Vituity 401(k) Fee Suit Gets Partial Green Light in California

Litigation over Vituity’s 401(k) plan is moving forward after a federal judge rejected some legal theories raised against the California-based health-care company while allowing others claims to advance.

Vituity, formally known as CEP America LLC, must face claims that it mismanaged its 401(k) plan by overpaying Schwab Retirement Plan Services for administrative services, Judge Richard Seeborg said Thursday. Plan participants called these fees unreasonably high at about $250 per person, per year, and said they were used to subsidize the administrative services Schwab provided to a different retirement plan covering Vituity physicians.

Seeborg, who sits in the US District Court ...