Universal Health Services ERISA $12.5M class action settlement

Universal Health Services Inc. (UHS) has set aside $12.5 million as part of a settlement in a class action lawsuit that alleged the company violated the Employee Retirement Income Security Act (ERISA). Universal Health Services denies any wrongdoing but has agreed to the settlement to avoid the ongoing cost and risks associated with litigation.

The ERISA settlement class is made up of all current and former participants, beneficiaries or alternate payees of a plan participant or former plan participant at any time on or after June 5, 2014, through and including Oct. 31, 2022. 

The lawsuit claims Universal Health Services failed to objectively and adequately review the retirement savings plan’s investment portfolio in terms of cost, maintained certain funds in the plan despite available and similar or identical options with lower cost and/or better performance and failed to consider lower-cost collective trusts that were available as alternatives.

The lawsuit claims the plaintiffs did not have all the available information to understand that the defendants “breached their fiduciary duties and engaged in other unlawful conduct in violation of ERISA until shortly before this suit was filed. … Moreover, having never managed a large 401(k) plan … plaintiffs lacked actual knowledge of reasonable fee levels and prudent alternatives available to such plans.” 

Universal Health Services Inc. is a Pennsylvania-based company that describes itself, according to the lawsuit, as “one of the nation’s largest and most respected providers of hospital and healthcare services,” with 90,000 employees who work at 44 hospitals, behavioral health facilities and other centers in multiple countries. The plan’s assets ranged from $1.3 billion to $1.9 billion between 2014 and 2017.

Universal Health Services will set aside $12.5 million, a third of which will go toward attorneys’ fees and litigation expenses. 

All class members are bound by the settlement agreement and may not opt out. 

Class members can object to certain aspects of the UHS ERISA class action lawsuit settlement but cannot ask the court to order a different settlement. Objections must be postmarked no later than March 23, 2023. 

The court will hold a fairness hearing and decide whether to approve the settlement March 30, 2023.

Class members do not need to submit a claim to be eligible for a payment if they are current participants in the retirement plan. 

However, former participants and beneficiaries without an active account must submit a participant claim form by Feb. 28, 2023. 

Who’s Eligible

Current and former participants, beneficiaries or alternate payees of a plan participant or former plan participant at any time on or after June 5, 2014, through and including Oct. 31, 2022

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

02/28/2023

Case Name

Boley, et al. v. Universal Health Services Inc., et al., Case No. 2:20-CV-02644-MAK, in the U.S. District Court for the Eastern District of Pennsylvania

Final Hearing

03/30/2023

Settlement Website

StrategicClaims.net/UHS401K

Claims Administrator

Strategic Claims Services
600 North Jackson Street, Suite 205
Media, PA 19063
info@strategicclaims.net
866-274-4004

Class Counsel

Laurie Rubinow
Alec J Berin
MILLER SHAH LLP

Defense Counsel

Brian T Ortelere
Deborah S Davidson
MORGAN LEWIS & BOCKIUS LLP