Allina Health System 401k Class Action Settlement

By Top Class Actions | January 9, 2020

Category: Closed Class Actions

This settlement is closed!

Please see what other class action settlements you might qualify to claim cash from in our Open Settlements directory!

Allina ERISA retirement planning

UPDATE: According to the settlement website, settlement checks were mailed to former participants on March 5, 2021.

A $2.4 million settlement has been reached to resolve claims that Allina violated its fiduciary duties by wrongly managing retirement funds.

The settlement benefits all participants and beneficiaries of the Allina Health System 403(b) Retirement Savings Plan and the Allina 401(k) Retirement Savings Plan between Aug. 18, 2011 and Nov. 21, 2019.

Plaintiffs in the Allina class action lawsuit claim that the healthcare system violated their fiduciary duties under ERISA by failing to properly invest retirement funds. The Allina class action claims that the health system did not try to reduce expenses for Class Members or optimize their plans.

Instead, Allina allegedly allowed plan trustee Fidelity to “lard the plans with high-cost, non-Fidelity mutual funds through which Fidelity received millions of dollars in revenue sharing payments.” Some of the funds were reportedly high-cost, poorly performing, or otherwise inappropriate as retirement savings options.

Allina has not admitted any wrongdoing but has agreed to pay $2.425 million to resolve claims against them.

Under the settlement, Class Members are entitled to a proportional share of the net settlement fund. Payments will be at least $10, although exact amounts will depend on account balances and other factors.

No Claim Form is required in order to benefit from the settlement. Instead, payments will be distributed based on Alina’s records.

Class Members do not have the right to exclude themselves from the settlement, although they are able to object to the settlement until March 16, 2020. The final approval hearing for the settlement is scheduled for April 16, 2020.

Who’s Eligible

All participants and beneficiaries of the Allina Health System 403(b) Retirement Savings Plan and the Allina 401(k) Retirement Savings Plan between Aug. 18, 2011 and Nov. 21, 2019.

Potential Award

At least $10, although payments will vary.

Each Class Member will receive a proportional share of the net settlement fund. Payment amounts will depend on account balances and other factors.

Proof of Purchase

N/A

Claim Form

Claim Forms are not required to benefit from this settlement. For more information, Class Members can visit the Frequently Asked Questions tab on the settlement website.

Objection Deadline

3/16/2020

Case Name

Larson, et al. v. Allina Health System, et al., Case No. 0:17-cv-03835-SRN, in the U.S. District Court for the District of Minnesota

Final Hearing

4/16/2020

UPDATE: The Allina Health System 401k Class Action Settlement was granted final approval on May 22, 2020. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.