In a legal clash over pension promises and fiduciary failings, Lehigh Valley Health Network Inc. is on the verge of settling a high-stakes class action accusing it of mishandling its $1.1 billion employee retirement plan, including using forfeited funds to offset its own obligations—a move likened by plaintiffs to stealing from the cookie jar they were tasked with guarding.
Filed in October 2024, the lawsuit alleges the Pennsylvania-based hospital system—one of the largest in the region after its 2024 merger with Jefferson Health—violated the Employee Retirement Income Security Act (ERISA) by failing to control runaway administrative fees and misusing unclaimed plan funds for its benefit instead of cutting costs for plan participants.
Settlement in Sight
In a joint status report filed Tuesday in Pennsylvania federal court, both parties announced a tentative resolution of the case, which, if approved, could bring relief to tens of thousands of employees dating back to October 21, 2018.
“The parties are in the process of finalizing the settlement agreement,” the filing reads, adding that either a preliminary approval motion or further update is expected by July 21, 2025.
While details of the settlement remain under wraps, the agreement marks a pivotal turn in a lawsuit that struck at the heart of how massive health systems manage the retirement funds of their workforce.
