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Cerner Corporation Excessive Fee Lawsuit

This is the second lawsuit against Cerner Corporation involving the same plaintiff. The original case alleged that fiduciaries of the $2 billion Cerner Corporation Plan did not exercise sufficient bargaining power in efforts to reduce plan expenses or “scrutinize” the prudence of the investment options in the Plan. The defendants are also accused of operating only in Cerner’s interest, allowing the company match contribution to be invested in shares of Cerner stock. Further, the lawsuit alleges a failure to track recordkeeper expenses through documentation of compensation, fee transparencies, cost competitive analyses, etc. In the first case, the defense filed a motion to “compel arbitration” because the plaintiff allegedly signed an arbitration agreement. This second lawsuit essentially repeats the same allegations yet also seeks to establish that the plaintiff did not sign an arbitration agreement.

www.planadviser.com; April 15, 2020.