United Surgical Employees Win 5th Circuit Revival of 401(k) Suit

Former employees of United Surgical Partners International Inc. revived a lawsuit challenging their 401(k) plan’s fee levels, when the Fifth Circuit on Thursday said they raised viable claims over administrative expenses and mutual fund share classes.

The employees can press claims tied to the plan’s annual recordkeeping costs—allegedly about $83 per person—because they compared these amounts to fees paid by similar retirement plans, the US Court of Appeals for the Fifth Circuit said in an unpublished opinion. United Surgical pointed to several circuit court decisions rejecting challenges to 401(k) recordkeeping fees, but the Fifth Circuit called those cases “distinguishable” ...