Miller Shah LLP Finalizes $3.5 Million Settlement with IQVIA Inc.

On December 5, 2024, the District Court for the Middle District of North Carolina finalized a $3.5 million settlement against IQVIA Inc. (“IQVIA”), a healthcare technology company, resolving allegations that it mismanaged its $1.13 billion IQVIA 401(k) Plan (“Plan”). The class action lawsuit, brought on behalf of the Plan and approximately 9,000 employees, alleged breaches of fiduciary duty under the Employee Retirement Income Security Act (“ERISA”).

Plaintiffs Darya Dearing, Janice Gullick, Nelson Sievers, and Lauren Brown (“Plaintiffs”) are former IQVIA employees. They filed the lawsuit in June 2020, alleging that IQVIA, its Board of Directors, and its Benefits Committee of imprudently managing the Plan. According to the Complaint, IQVIA selected and retained underperforming investments that carried excessive costs and risks compared to lower-cost alternatives.

Plaintiffs argued that IQVIA failed to replace actively managed funds with index funds, which typically have lower expenses, lower risk, and better performance. The Complaint noted that in 2018 alone, IQVIA could have saved $4.5 million by adopting more prudent investment options. Management fees for the plan, ranging from 0.48% to 0.52% of total assets, were also significantly higher than the 0.28% average for similar plans from 2014 to 2018.

Plaintiffs received class certification in May 2022. Litigation proceeded toward a bench trial scheduled for September 2023 after the Court largely denied IQVIA’s motion for summary judgment. In light of the costs, risks, and delay of trial and appeal, the parties negotiated and reached a settlement that would be greatly beneficial to the Plan members.

In his final approval order, U.S. District Judge William L. Osteen Jr. determined the settlement was “fair, reasonable, and adequate considering the costs, risks, and delay of trial and appeal.” The settlement provides for distribution of the $3.5 million fund to plan participants and beneficiaries who invested between June 23, 2014, and the date of final approval.

The case caption is Dearing et al. v. IQVIA Inc. et al., Case No. 1:20-cv-00574, filed in the U.S. District Court for 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.

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