Cigna Group faces allegations of unlawfully prioritizing its own financial interests over those of its 401(k) plan participants, according to a putative class action filed Tuesday in the U.S. District Court for the Eastern District of Pennsylvania.
Sean Hicks, a participant in the Cigna Group 401(k) plan, claims that the company violated the Employee Retirement Income Security Act (ERISA) by improperly using forfeited plan funds to reduce its own future contribution obligations instead of covering plan expenses. Despite Cigna’s reported significant financial growth, including a 27% revenue increase to $247.1 billion in 2024, the company allegedly diverted millions in forfeited funds to benefit itself.
“Hicks alleges that Cigna and plan fiduciaries acted at their own discretion, placing their interests above those of plan participants,” the complaint states. The suit further claims that Cigna caused participants to incur at least $10 million in expenses that forfeited funds could have covered.
The complaint accuses Cigna of breaching fiduciary duties of prudence and loyalty under ERISA, including the Anti-Inurement provision and the prohibition on self-dealing. It also asserts that Cigna failed to properly monitor plan fiduciaries.
During the proposed class period through 2024, over $16 million in forfeited funds were allegedly diverted from plan administrative costs to reduce Cigna’s contributions, with approximately $3.2 million diverted in 2020 and $5.5 million in 2023 alone.
Sean Hicks, represented by Lynch Carpenter LLP attorneys Gerald D. Wells III and Stephen E. Connolly, seeks to represent a class of Cigna 401(k) plan participants.
The case is Sean Hicks v. The Cigna Group, et al., case number 2:25-cv-02560.
