Class action filed against Dartmouth Health for alleged mismanagement of $1.9B retirement fund

Jon Phelps, The New Hampshire Union Leader, Manchester
·2 min read

Apr. 26—A class action lawsuit has been filed against Dartmouth Health in response to the alleged mismanagement of up to $1.9 billion in employee retirement funds, according to court documents.

The lawsuit was filed in federal court in March under the clinic's old name, Dartmouth-Hitchcock Clinic. The board of trustees and the administrative investment oversight committee are also listed as defendants.

The suit alleges the clinic failed in its fiduciary duty by losing millions in "excessive administration and recordkeeping costs" for 401 (a) and 401 (b) plans. The Dartmouth-Hitchcock Retirement Plan and the Dartmouth-Hitchcock Employee Investment Plan had substantial bargaining power regarding fees and expenses "that were charged against participants' investments," the lawsuit reads.

"Defendants, however, did not try to reduce the (plans) expenses or exercise appropriate judgment to scrutinize each investment option that was offered in the (plans) to ensure it was prudent," the suit reads.

The plaintiffs claim the committee did not acknowledge keeping meeting minutes and did not provide any upon request.

The plan had $1.9 billion in fiscal year 2020. More than 31,000 have balances on the plans.

Dartmouth Health is aware of the lawsuit and its claim of excessive fees.

"Dartmouth-Hitchcock does not comment on the specifics of any pending litigation, however we can state that we deny the allegations and we will vigorously defend this lawsuit," the statement reads. "We understand employees may be concerned by this news, but Dartmouth-Hitchcock has managed the Plans in accordance with its fiduciary duties and we remain committed to continuing to serve the Plans for the benefit of all participants and plan beneficiaries."

The plaintiffs are listed as Debra M. Adams, of Canaan; Danillie L. Mars, of Claremont; Michelle L. Miller of Buskirk, N.Y.; and Anita W. Dame of Manchester.

They claim the plan should have been eligible for the lowest fees on the market, according to the suit. The plaintiffs ask for the class action lawsuit to proceed and to "to make good to the plans all losses to the (plan)," the lawsuit reads.