Federal court dismisses central claims in hospital retirement plan case

The U.S. District Court for the District of Connecticut this week largely dismissed a lawsuit alleging that Yale New Haven Hospital violated its fiduciary duties by selecting a retirement plan with excessive fees or poorly performing investments. The court allowed certain ancillary claims related to the plan’s recordkeeping fees to go forward.   
   
AHA last April filed an amicus brief, joined by the U.S. Chamber of Commerce and Association of American Medical Colleges, asking the court to dismiss the case, which is similar to over 100 other lawsuits filed against hospitals and other organizations since 2019 that challenge the decisions retirement plan fiduciaries made about the investment options available to plan participants or the arrangements the fiduciaries negotiated with the plan’s service provider.