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Universal Health 401(k) Lawsuit Now Class Action Covering 60,000

March 8, 2021, 5:10 PM

Universal Health Services Inc. must face a certified class of 60,000 people in a lawsuit challenging the fees and investment options in its $1.9 billion 401(k) plan, a Philadelphia federal judge ruled Monday.

Universal Health argued against class certification, saying the class members’ individual investment decisions made them subject to individual defenses under Section 404(c) of the Employee Retirement Income Security Act, which allows a retirement plan fiduciary to avoid liability for losses stemming from a plan participant’s personal investment choices.

Judge Mark A. Kearney of the U.S. District Court for the Eastern District of Pennsylvania disagreed. The “potential applicability ...