Cigna Faces Proposed Class Action Over 401(k) Fees

Law360, New York (February 28, 2007, 12:00 AM EST) -- A proposed class action lawsuit has hit Cigna Corp. with allegations of breaches of fiduciary duty, “flagrant self-dealing,” and excessive and undisclosed fees for plan participants.

The lawsuit, which names Cigna Corp., Cigna Healthcare of Illinois Inc., the Corporate Benefit Plan Committee and Plan Administrator John Arko as defendants, was filed Tuesday in federal court in Illinois.

The lawsuit invokes the Employee Retirement Income Security Act of 1974, which prohibits charging excessive fees and expenses to 401(k) plans. ERISA also assigns those in charge of 401(k)...
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