×
Search

866-540-5505

Se Habla Espanol
Menu
Search

Our Blog

Home/Blog/ERISA: Court Denies Motion to Dismiss in IQVIA Lawsuit

ERISA: Court Denies Motion to Dismiss in IQVIA Lawsuit

On September 21, 2021, a District Judge in the United States District Court for the Middle District of North Carolina ruled that an ERISA class action lawsuit against IQVIA, Inc., the Board of Directors of IQVIA Holdings, Inc., and its Investment Benefits Committee (collectively, “IQVIA” or “Defendants”), was fit to proceed, denying IQVIA’s effort to dismiss the suit.

IQVIA is the plan sponsor for the IQVIA 401(k) Plan (the “Plan”). With over $1.6 billion in assets, the Plan is one of the largest defined contribution retirement plans in the United States. Importantly, large plans like the Plan have substantial leverage to negotiate for lower fees and expenses charged against plan participants’ investments.

Defined contribution plans, such as 401(k) plans, are governed by the Employee Retirement Income Security Act of 1974 (“ERISA”), a federal statute establishing standards for plan administrators to ensure that investments offered to employees are prudently selected and monitored. Plaintiffs, represented by Miller Shah LLP, allege that IQVIA breached its fiduciary duties under ERISA by: (1) failing to fully disclose the expenses and risk of the Plan’s investment options to participants; and (2) selecting, retaining, and otherwise ratifying high-cost and poorly-performing investments instead of offering more prudent alternatives when such prudent investments were readily available at the time that they were chosen for the Plan and throughout the relevant period.

Specifically, Plaintiffs contend that the actively managed Fidelity Freedom Funds, the Columbia Acorn USA Fund, and the Prudential Jennison Mid Cap Growth Fund were—and continue to be—imprudent investments that should not have been offered to Plan participants.

IQVIA filed a motion to dismiss the legal action on December 8, 2020, arguing that Plaintiffs failed to state a claim upon which relief can be granted and offered no facts that plausibly show Defendants employed a deficient process for managing the plan. Furthermore, Defendants argued that the Plan contains popular investment options within an acceptable fee range (0.035-1.07%).

On September 21, 2021, the Court denied all three counts of IQVIA’s Motion to Dismiss, citing ERISA actions Reed v. MedStar Health, Inc. et al. and Jones v. Coca-Cola Consolidated, Inc. et al. in the process.

An update to this lawsuit can be found here. The case caption is Dearing et al v. IQVIA, Inc. et al., No. 1:20-cv-00574-WO-JEP, filed in the Middle District of North Carolina.

The legal team at Miller Shah LLP has significant experience representing ERISA matters. If you have any questions regarding this subject or this post, please contact Alec Berin (ajberin@millershah.com) or Jonathan Dilger (jadilger@millershah.com). The firm can also be reached toll-free at (866) 540-5505.

Share Post:
facebooktwitterLinkedin

Categories

Archives

Contact
Miller Shah LLP

While this website provides general information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer. To schedule a meeting with an attorney, please call 866-540-5505 or complete the intake form to email us.
Alec J. Berin - Associate

PA Philadelphia | 866-540-5505

Alfonso Vilaboa - Of Counsel

NJ Hoboken |

Anika S. Keuning - Project Analyst

CA San Diego | 866-540-5505

Anna D’Agostino - Associate

NY New York City | 866-540-5505

Betsy Ferling-Hitriz - Legal Assistant

CT Chester | 866-540-5505

Bruce D. Parke - Partners

PA Philadelphia | 866-540-5505

Caroline Soper - Project Analyst

NY New York City | 866-540-5505

Christopher A. Miller - Associate

PA Philadelphia | 866-540-5505

Deborah C. England - Of Counsel

CA San Francisco | 866-540-5505

Edward H. Glenn - Of Counsel

NY New York City | 866-540-5505

Edward M. Fitzgerald - Staff Attorney

CA Los Angeles | 866-540-5505

Elena M. DiBattista - Legal Assistant

FL Fort Lauderdale | 866-540-5505

Elise M. Wilson - Project Analyst

NY New York City | 866-540-5505

Eric L. Young - Of Counsel

PA Philadelphia | 866-540-5505

Finn M. Mutrux - Office Staff

CA Los Angeles | 866-540-5505

Gina S. Demetriades - Office Staff

CT Chester | 866-540-5505

Heidi A. Wendel - Of Counsel

NY New York City | 866-540-5505

James C. Shah - Partners

CA Los Angeles | 866-540-5505

James E. Miller - Partners

CT Chester | 866-540-5505

Jayne A. Goldstein - Partners

FL Fort Lauderdale | 866-540-5505

Jillian M. Boyce - Office Staff

CT Chester | 866-540-5505

Jocelyn McNamara - Project Analyst

NY New York City | 866-540-5505

Johanna C. Richter - Law Clerk

PA Philadelphia | 866-540-5505

John C. Roberts - Associate

PA Philadelphia | 866-540-5505

Jonathan Dilger - Office Staff

NY New York City | 866-540-5505

Julie M. Capito - Legal Assistant

CA San Francisco | 866-540-5505

Katie Edwards - Legal Assistant

PA Philadelphia | 866-540-5505

Kolin C. Tang - Partners

CA San Diego | 866-540-5505

Laurie Rubinow - Partners

CT Chester | 866-540-5505

Madison Gregg - Associate

NY New York City | 866-540-5505

Marialisa Samo - Legal Assistant

CA San Diego | 866-540-5505

Mark Xiao - Associate

NY New York City | 866-540-5505

Natalie Finkelman Bennett - Partners

PA Philadelphia | 866-540-5505

Nathan C. Zipperian - Partners

FL Fort Lauderdale | 866-540-5505

Nicholas Day - Of Counsel

NJ Hoboken | 866-540-5505

Nicholas K. Ono - Project Analyst

NY New York City | 866-540-5505

Raffaele Scalcione - Of Counsel

IT Milan | 866-540-5505

Reilly K. Powers - Project Analyst

PA Philadelphia | 866-540-5505

Robert W. Biela - Staff Attorney

PA Philadelphia | 866-540-5505

Ronald S. Kravitz - Of Counsel

CA San Francisco | 866-540-5505

Rrita Osmani - Project Analyst

CT Chester | 866-540-5505

Shuping Li - Project Analyst

NY New York City | 866-540-5505

Stephen T. Rutkowski - Law Clerk

CT Chester | 866-540-5505

Sue Moss - Legal Assistant

PA Philadelphia | 866-540-5505

Sydney D. Finlay - Associate

CA San Diego | 866-540-5505

Tina Moukoulis - Staff Attorney

PA Philadelphia | 866-540-5505