Court Rules Schlichter Bogard & Denton’s 401(k) Suit Against Anthem May Proceed
On March 23, U.S. District Judge Tanya Walton Pratt denied a motion to dismiss excessive-fee claims in a suit brought by Schlichter Bogard & Denton on behalf of participants in Anthem’s 401(k) plan. Judge Pratt’s ruling follows other recent decisions that have likewise denied similar motions to dismiss 401(k) suits brought by Schlichter Bogard & Denton, including in cases against Oracle and Insperity.
A Bloomberg article describing the Anthem ruling called the decision a “victory for St. Louis law firm Schlichter Bogard & Denton” coming just “one day after the firm advanced a similar lawsuit” against Oracle. The Bloomberg article quotes Schlichter Bogard & Denton’s founding and managing partner Jerry Schlichter as saying that “[t]he Court ruled that our claims of unreasonable investment management and administrative fees will go forward, including the claims that this very large plan had retail mutual funds when far lower cost identical institutional funds were easily available, and that the administrative fees were asset based, no bid fees[.]”