In a legal battle that's spanned nearly four years and exposed deep fissures in one of America’s largest retirement plans, attorneys representing a former UnitedHealth Group employee have asked a Minnesota federal judge to approve a $23 million attorney fee from the $69 million class action settlement resolving claims that the health insurance giant mismanaged its 401(k) plan.

The request—a full one-third of the total settlement value—comes from lawyers at Sanford Heisler Sharp LLP and Halunen Law, who filed the motion Thursday alongside a final bid for settlement approval.

Class-Wide Silence Signals Support

In a move as smooth as a courtroom chess match, the attorneys noted the deafening silence from the class: out of 350,000 class members, not one objected to the proposed award. Only two letters were submitted, both focused on how the funds should be distributed—not on the attorneys' share.

“This fee is consistent with what courts have approved in ERISA and common fund cases nationwide,” the lawyers argued in the motion.

Breakdown of the Ask

In addition to the $23 million legal fee, the motion seeks:

• $735,000 in litigation cost reimbursements

• A $50,000 service award for Kim Snyder, the former UnitedHealth employee who initiated the lawsuit in April 2021

The service award, the lawyers argue, is justified by Snyder’s 340 hours of personal time invested over four years. To sweeten the optics, half of that award will come from the attorneys’ own reimbursements to protect the class's financial recovery.

The Allegations: Loyalty or Lucrative Ties?

Snyder’s lawsuit alleged UnitedHealth refused to ditch underperforming Wells Fargo investment funds in its 401(k) plan to preserve a lucrative business relationship with the bank. According to her complaint, the funds trailed behind 70–90% of peer funds over a decade, costing employees hundreds of millions in lost gains.

The claims struck at the core of fiduciary responsibility under the Employee Retirement Income Security Act (ERISA), accusing UnitedHealth of putting corporate partnerships ahead of employee retirement security.

Legal Journey to Settlement

• February 2022: U.S. District Judge John R. Tunheim granted class certification, allowing Snyder to represent all plan participants since April 23, 2015.

• March 2024: Judge Tunheim largely denied summary judgment for UnitedHealth.

• December 2024: Both parties reached a settlement and requested preliminary court approval.

The attorneys’ fee motion followed this string of courtroom victories that paved the way for the settlement’s final approval.

Counsel on Both Sides

Plaintiffs’ Team:

• Sanford Heisler Sharp LLP: Leigh Anne St. Charles, Kevin H. Sharp, Brent Hannafan, David McNamee, Charles Field, David Sanford

• Halunen Law: Susan M. Coler

UnitedHealth’s Defense:

• Kirkland & Ellis LLP: Craig S. Primis, K. Winn Allen, Madelyn A. Morris

• Faegre Drinker Biddle & Reath LLP: Martin S. Chester, Deborah A. Ellingboe, Drew M. Horwood