Novant Health Inc., a North Carolina-based operator of 15 hospitals throughout the mid-Atlantic region, has agreed to settle an excessive fee claim for $32 million.
Filed in March 2014 in U.S. District Court for the Middle District of North Carolina, the claim alleged fiduciaries to seven retirement plans sponsored by Novant breached their fiduciary duties under the Employee Retirement Income Security Act.
Specifically, the claim alleged the plans offered unreasonably priced investment options in order to funnel excessive fees to two of the plans' service providers, Great-West Life and Annuity Insurance Co., the plans' recordkeeper, and D.L. Davis and Co., the plans' advisor.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
