A recent development in a class-action lawsuit against UnitedHealth Group (UHG) uses emails from the company's CFO as evidence that the insurance giant favored certain Wells Fargo funds in its retirement portfolio. The lawsuit claims that this preference violated UHG's fiduciary duty to 401(k) plan members, approximately 200,000 current and former employees and their beneficiaries.
Law firm Sanford Heisler Sharp filed the lawsuit, Kim Snyder v. UnitedHealth Group, in April 2021 on behalf of Snyder and other enrollees in the company's 401(k) plan. The case was filed under the Employee Retirement Income Security Act (ERISA) and is being heard in the U.S. District Court for the District of Minnesota, the state where UHG has its headquarters.
The suit claims that "United … breached its duty of loyalty and prudence in retaining the Wells Fargo Target Date Suite, one of the worst-performing target-date options in the entire market," according to a statement from Sanford Heisler Sharp.
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