A Minnesota federal judge is allowing key claims in a proposed class action lawsuit against UnitedHealth Group to progress, deciding current and former participants in the company’s 401(k) savings plan plausibly alleged economic injury.
The court issued the opinion June 22, denying parts of UnitedHealth’s motion to dismiss. While the initial complaint was filed in April 2025, the plaintiffs filed an amended complaint in October. They claimed UnitedHealth mismanaged $19.3 million in forfeitures from 2019 through 2023 “to disloyally reduce future employer contributions for their own selfish interests,” rather than to offset administrative expenses.
The judge greenlit claimed breaches of the duties of prudence and loyalty to proceed, as well as a failure-to-monitor claim for inadequate oversight of committee members responsible for the plan. The judge found that UnitedHealth made the same “asset-reducing choice” for years, contributing to an “imprudent process.”
However, the judge dismissed some claims: violations of the Employee Retirement Income Security Act’s anti-inurement and prohibited-transaction provisions.
“The decision to use forfeitures to reduce UnitedHealth’s contributions did not risk the plan’s ability to pay promised benefits,” the opinion said.
Claims related to conduct in 2024 and beyond were dismissed with prejudice, since plaintiffs did not respond to a UnitedHealth argument that a plan amendment cut the committee’s discretion over handling forfeitures.
As of the end of 2023, the savings plan had 267,555 active participants. The plaintiffs estimated a potential cumulative compounded loss of $25.6 million through 2024.
The opinion said federal courts have rendered 51 judicial decisions in similar cases. In May, Cigna lost a bid to dismiss a case over alleged mismanagement of employee retirement benefits, while in June 2025, a federal judge approved a $69 million settlement in a separate class action that alleged UnitedHealth kept poorly performing Wells Fargo target-date funds in the plan.
Becker’s contacted UnitedHealth and will update this story if more information becomes available.
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