A New York federal judge on Tuesday granted preliminary approval to a $4.6 million settlement resolving claims that Garnet Health Medical Center saddled its workers with excessive fees and sluggish investments in their employee retirement plan—bringing a yearlong ERISA battle to the brink of closure.
Settlement Clears First Legal Hurdle
U.S. District Judge Philip M. Halpern issued a brief but consequential order granting initial approval of the class action settlement and certifying a settlement class for participants in the hospital’s defined-contribution 403(b) plan, the nonprofit-sector equivalent of a 401(k).
The approval follows the parties’ announcement in September that they had struck a deal to end the case, which was originally filed in August 2024.
Workers Alleged Millions Lost to Poor Investments
Plan participants argued they suffered millions in losses due to what they described as lackluster investment performance and costly administrative fees embedded in the 403(b) plan. With both sides opting for mediation in July, momentum toward settlement accelerated, and the workers moved for preliminary approval in October.
