Bailey Glasser Defeats Motion To Dismiss On Behalf of St. Luke’s Health System Employees
On June 22, Judge Stephen R. Bough, US District Court for the Western District of Missouri, ruled all claims raised by employees of St. Luke’s Health System, a Kansas City-based hospital system, would not be dismissed.
The case centers on alleged excessive recordkeeping and investment management fees charged to doctors, nurses, and other St. Luke’s employees between 2014 and 2017. The employees claim that St. Luke’s allowed the Plan’s recordkeeper to overcharge employees and the Plan for years through direct and indirect fees, such as ‘revenue sharing’, and by including an excessively expensive mutual fund managed by Transamerica.
Bailey Glasser’s ERISA group has a long history of representing employees in lawsuits concerning excessive fees and imprudent investment options. The Bailey Glasser team included Gregory Porter and Mark Boyko, who recently announced a $17 million settlement in a case concerning the investments offered in Neuberger Berman’s 401(k) plan as well as obtaining recoveries for employees of TIAA-CREF, Citigroup, Edward Jones, and Franklin Templeton. Porter noted that they filed the case to “assure that the workers and retirees, including frontline healthcare workers, can rely on their employer to back them as required by federal law.”
A copy of the Court’s order can be found here.
