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Universal Health Services Latest Employer Sued Over 401(k) Fees

June 8, 2020, 3:46 PM

Universal Health Services Inc. was sued in Pennsylvania federal court by three former employees who say the company’s 401(k) plan offered high-cost investments when better performing options were available at lower cost.

Universal, which operates 400 medical facilities across the country, is accused of mismanaging its $1.9 billion 401(k) plan by filling it with expensive, actively managed funds that charged “grossly excessive fees” compared to similar or superior alternatives, including passive funds and collective trusts. This failure decreased plan participants’ compounding returns and reduced the amount they’ll have at retirement, according to the June 5 complaint.

“There is no good-faith ...