Lehigh Valley Faces Reckoning in $1.1B Retirement Plan Forfeiture Suit

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  • For the workers: Mark K. Gyandoh, James A. Wells, and James A. Maro of Capozzi Adler PC, alongside Peter A. Muhic of Muhic Law LLC.

  • For Lehigh Valley: Jeremy P. Blumenfeld and Catherine S. Houseman of Morgan Lewis & Bockius LLP.

Requests for comment from both sides were not returned, though insiders suggest the final agreement could serve as a cautionary precedent for other large health systems navigating fiduciary compliance.

What’s Next?

The clock now ticks toward July 21, 2025, when the parties are expected to either seek preliminary approval of the settlement or file another update. If approved, the case would join a growing list of ERISA class actions pushing back against what plaintiffs allege are systematic breaches of fiduciary duty in large employer-sponsored retirement plans.

For Lehigh Valley, the settlement could close a contentious chapter. But for thousands of workers depending on their pensions, the real test will be whether reforms follow the resolution—or if history quietly repeats itself.

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