Milliman Class Action
Case name: Joanna P. Mattson, et al., v. Milliman, Inc., et al.
Case type: Financial Services Litigation
Filed in: U.S. District Court for the Western District of Washington
Docket: Case No.: 2:22-cv-00037
Case Summary
On January 13, 2022, Sanford Heisler Sharp filed a class action lawsuit against Milliman, Inc., alleging that the company breached its fiduciary duties under ERISA by mismanaging the company’s retirement funds. The Complaint was filed in the U.S. District Court for the Western District of Washington.
The Complaint alleges Milliman failed to eliminate a family of risk-based “target risk funds,” from the company’s Profit Sharing and Retirement Plan that significantly underperformed meaningful benchmark funds and indices for nearly ten years.
Milliman, a global consulting and actuarial firm, had annual revenues of approximately $1.4 billion in 2021, advising companies in a variety of industries: healthcare, property and casualty insurance, life insurance and financial services, and employee benefits.
The underperforming target risk funds, for which Milliman acted as sub-adviser, have had a significant negative impact on employees’ retirement funds, resulting in losses to its employees of potentially up to $85 million in retirement savings.
Plaintiff Joanna Mattson filed the case as an individual and as representative of approximately 4,000 Plan participants in Milliman’s $1.7 billion 401(k) Plan. The defendants are Milliman, Inc. and its Board of Directors, the Milliman Investment Committee and Administrative Committee, and their members.
On October 10, 2023, the Court granted certification to the class.
A bench trial was held from April 1-10, 2024.
Procedural History
- Complaint Against Milliman, Inc., et al., filed Jan. 13, 2022
News Coverage
- Milliman Tells Trial Judge It Has No Liability For 401(k) Losses, Law360, April 10, 2024
- Milliman Lost 401(k) Funds On Unproven Strategy, Judge Told, Law360, April 1, 2024
- Milliman headed to trial over its 401(k), Investment News, February 12, 2024
- Consulting Co. Can’t Sink Class Challenge To 401(k) Roster, Law360, February 9, 2024
- Milliman Target Risk 401(k) Fund Suit Gets Green Light for Trial, Bloomberg Law, February 9, 2024
- Milliman 401(k) Target Risk Fund Lawsuit Gets Class Treatment, Bloomberg Law, October 10, 2023
- Consulting Co. Workers Get Class Cert. In 401(k) Suit, Law360, October 10, 2023
- ERISA Litigation Continues in the New Year, PlanSponsor, January 18, 2022
- Milliman’s TRF Choice Challenged, NAPAnet.org, January 18, 2022
- Milliman 401k Plan Sued for Use of ‘Untested’ Target Risk Funds, 401kSpecialist, January 17, 2022
- Milliman 401(k) plan participant alleges ERISA violations, Pensions & Investments, January 14, 2022
- Consulting Co. Workers Say Iffy 401(k) Funds Cost Them $85M, Law360, January 13, 2022
Attorneys Involved in the Case
Charles Field
San Diego Managing Partner
David Sanford
Chairman
Judge Kevin Sharp
Co-Vice Chairman
Brent Hannafan
Nashville Partner
Kate Mueting
Firm Administrative Partner
Bob Sullivan
Of Counsel
Sharon Kim
Senior Litigation Counsel
David McNamee
Associate
Denise Choung
Associate
Hampton Watson
Associate