UnitedHealth 401k Lawsuit Settlement Process and Key Dates

The UnitedHealth 401k lawsuit settlement process is a complex and lengthy procedure. The settlement was announced in 2017.

The lawsuit alleged that UnitedHealth Group, Inc. and its affiliates failed to pay interest on employee contributions to the 401(k) plan. This failure resulted in millions of dollars in lost interest for employees.

The settlement provides relief to approximately 220,000 participants in the UnitedHealth 401(k) plan.

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The $69 Million UnitedHealth Settlement Fund is a significant portion of the overall settlement. It's made up of various components, including settlement administration costs, attorneys' fees, and payments to class members.

Settlement administration costs will be determined at a later date, so we don't know the exact amount yet. Attorneys' fees, on the other hand, are capped at $23,000,000. Attorneys' expenses are also included, but the exact amount will be presented to the court at a later date.

The incentive award to the plaintiff is a maximum of $100,000. This leaves the remaining settlement funds for payments to class members.

Here's a breakdown of the settlement fund components:

To be eligible for the UnitedHealth 401(k) lawsuit settlement, you must have participated in the UnitedHealth Group 401(k) Savings Plan anytime between April 23, 2015 to the present. You also need to have invested in one or more of the Wells Fargo Target Date Funds listed in the official settlement notice.

The payout amount will be determined based on your 401(k) Savings Plan investments in the Wells Fargo Target Date Funds during the class period. Payments will be issued to class members after the court grants final approval to the settlement.

Here's how you can receive your settlement payment:

UnitedHealth Group was recently hit with a class action lawsuit over its handling of 401(k) forfeitures. The company allegedly used over $19 million in forfeited funds to offset employer contributions without applying any of it toward plan expenses.

This cost-cutting move is claimed to have shortchanged participants by more than $25 million in compounded value. The lawsuit alleges five ERISA violations, including breaches of loyalty, prudence, and failure to monitor fiduciaries.

The plaintiffs represent over 250,000 participants in a $22 billion plan.

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To be eligible for a settlement payment, you need to meet two key criteria. You must have participated in the UnitedHealth Group 401(k) Savings Plan at some point between April 23, 2015, and the present.

Investing in one or more of the Wells Fargo Target Date Funds listed in the official settlement notice is also a requirement. The settlement notice will have a list of the specific funds involved.

If you're a current participant in the 401(k) Savings Plan, you'll automatically receive your share of the settlement payment deposited into your account. Former participants, on the other hand, will receive a payment by check or have the option to roll it over to a qualified retirement account.

To summarize, here are the eligibility criteria:

The UnitedHealth 401k lawsuit settlement payout is a significant development for affected plan participants. Each payment amount will be determined based on the 401(k) Savings Plan invested in the Wells Fargo Target Date Funds during the class period.

To receive a class action settlement payment, plan participants will be issued a payment by check, unless they are current participants, in which case the payment will be deposited directly into their 401(k) Savings Plan accounts.

Former plan participants also have the option to receive the settlement payment through a rollover to a qualified retirement account, providing more flexibility in how they receive their payout.

The payout date for the UnitedHealth Group ERISA Settlement will be after the court grants final approval to the settlement, which is currently scheduled for June 12, 2025.

The total settlement fund is $69,000,000, which will be allocated as follows:

As you navigate the details of the UnitedHealth 401k lawsuit settlement, it's essential to keep track of the key dates. You have a Fairness Hearing scheduled for June 12, 2025.

The deadline for submitting your Former Participant rollover form is April 28, 2025. Make sure to mark this date on your calendar to avoid any potential delays.

Here are the important dates and deadlines to keep in mind: