Virtua Health Inc. mismanaged its workers’ retirement plans by offering pricey mutual funds and a stable value fund that allowed plan service provider Lincoln Financial Group to reap outsized profits, two plan participants alleged in a proposed class action.
The lawsuit, filed Oct. 18 in the US District Court for the District of New Jersey, takes aim at the relationship between Virtua and Lincoln, which allegedly served as the Virtua plans’ recordkeeper and offered the stable value fund that served as the plans’ primary fixed income investment. This fund paid Lincoln excessive fees through a revenue sharing arrangement that …