Seth Stern et al. v. JPMorgan Chase & Co. et al.

Docket No.
1:25-cv-02097
District Court
New York Southern

Goal

  • Block unlawful practices
  • Certify class
  • Declaration that defendants breached their fiduciary duties
  • Declaration that defendants engaged in prohibited transactions
  • Remedy defendants’ breaches of fiduciary duties and prohibited transactions
  • Replace the plan's fiduciaries with independent fiduciaries
  • Replace the plan’s PBM and/or order search for a replacement PBM

Issues

Why This Matters

Plaintiffs allege that the defendants’ conduct violates their fiduciary duty under the Employee Retirement Income Security Act to ensure that prescription drug prices under their health benefit plans are reasonable. The mismanagement of health benefit plan funds can contribute to increased health care premiums and out-of-pocket drugs costs, while also constraining employee wage growth.

Potential Impact

Ensuring employers comply with statutory obligations to monitor the cost-effectiveness of various aspects of their health benefit plans could help lower health care costs for employees.

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