The IQVIA 401k lawsuit is a complex issue that has left many employees wondering about their retirement savings. The company allegedly made changes to its 401k plan that resulted in significant losses for participants.
IQVIA, a healthcare analytics company, was acquired by a private equity firm in 2019. This change in ownership may have contributed to the alleged mismanagement of the 401k plan.
Employees who were enrolled in the plan at the time of the alleged mismanagement may be eligible to join the class-action lawsuit.
$3.5M Class Action Settlement
IQVIA's 401(k) class action lawsuit resulted in a $3.5M settlement.
The lawsuit alleged that IQVIA failed to disclose expenses and risks of its 401(k) investment options.
IQVIA selected high-cost and poorly performing investments that caused participants to lose money.
The company is accused of violating the Employee Retirement Income Security Act.
IQVIA's actions allegedly led to financial losses for participants in the 401(k) plan.
The settlement amount is a significant result of the lawsuit against IQVIA.
Readers also liked: Convert 401k to Roth 401 K
ERISA Lawsuit Details
In the world of ERISA lawsuits, understanding the burden of proof is crucial. The Supreme Court has clarified that in ERISA prohibited transaction claims, the burden of proof lies with the plaintiff.
The Supreme Court issued a landmark decision in Cunningham v. Cornell on April 17, 2025, which had a significant impact on ERISA claims. This decision highlights the importance of meeting the burden of proof in these types of cases.
To win an ERISA lawsuit, the plaintiff must provide substantial evidence to support their claim. The court will carefully review the evidence presented to determine if it meets the required standard.
Consider reading: Is a Solo 401k Subject to Erisa
Highlights
Over 30 class action lawsuits have been filed since the fall of 2023 alleging that using 401(k) forfeitures to offset future employer contributions violates ERISA provisions.
Plaintiffs are gaining traction with some courts on this novel theory, despite clear guidance from the U.S. Department of the Treasury acknowledging the propriety of using 401(k) forfeitures to offset future employer contributions.
Readers also liked: Using 401k to Buy Land
A handful of decisions on motions to dismiss offer insight into how courts are viewing these claims.
Here are some key points to consider:
- Forfeitures are employer contributions that participants forfeit when they leave employment before those contributions vest.
- Historically, these forfeited monies stay in the 401(k) plan.
- Plan sponsors and fiduciaries should evaluate their plan's forfeiture terms to ensure the use of plan forfeitures is consistent with plan terms.
Featured Images: pexels.com
