IQVIA Settles Allegations of Substandard 401(k) Investments
Healthcare technology giant IQVIA has agreed to a settlement over claims that it mismanaged its $1.13 billion 401(k) plan, as reported in a recent filing with a North Carolina federal court. This agreement resolves a contentious dispute brought by a class of 9,000 participants alleging that IQVIA chose inferior, high-cost investments for its retirement plan.
Details of the Settlement
The specifics of the settlement, reached between IQVIA and four former employees, remain under wraps. However, both parties have informed the court of their decision to conclude their Employee Retirement Income Security Act (ERISA) disagreement. A motion for preliminary approval of the settlement is expected by May 15, well ahead of a bench trial initially scheduled for September.
IQVIA’s Defense and Plaintiffs’ Claims
In defense, IQVIA contended that the expert analysis provided by the plaintiffs inappropriately compared their plan’s performance with only the most successful funds, an approach the company criticized as selective and not reflective of typical fiduciary decisions. Conversely, the plaintiffs maintained that their expert’s comparison was robust, illustrating what a well-performing fund would entail, thereby demonstrating the inadequacies of their own plan’s funds.
