A federal district court judge has denied a motion to dismiss a proposed class action suit against The Cigna Group over mishandling of its 401(k) plan, which holds about $13 billion in assets for about 93,000 participants. Former Cigna employees claim the company violated the Employee Retirement Income Security Act (ERISA). The case is In re: Cigna ERISA Litigation, f/k/a Reven et al. v. The Cigna Group 401(k) Plan Retirement Plan Committee (E.D. Pa., No. 2:25-cv-02465).
In denying Cigna’s motion to dismiss, the judge found that the plaintiffs had sufficiently alleged claims for breach of fiduciary duties under ERISA, violation of ERISA’s anti-inurement provision, engagement in prohibited actions, and failure to monitor other fiduciaries. The court’s May 2026 ruling on Cigna’s motion to dismiss comes after an April 2026 ruling denying Cigna’s motion to stay pending review of a separate ERISA case by the U.S. Supreme Court.
First, the former workers claim that Cigna and its plan fiduciaries inappropriately used over $17 million in forfeited nonvested employer contributions to reduce its future contributions for other employees. The workers maintain that Cigna should have used the funds to pay for plan expenses or chosen alternatives that would have benefited the plan participants, rather than serving its own financial interests.
Next, the former workers challenge the plan’s failure to monitor and remove the Cigna Fixed Income Fund for underperformance as compared to other available investment options. They claim financial losses due to the company’s continued inclusion of the fund as an option. Like the claim related to forfeited plan assets, this claim focuses on Cigna’s fiduciary duties to monitor and make decisions in the best interests of plan participants.
The Cigna case is one of many similar ERISA class action lawsuits currently pending across the country. These suits focus on employer-sponsored defined contribution plans and on how plan administrators allocate forfeited plan assets from participants who leave their employment before becoming fully vested. While some courts have dismissed these cases, others have allowed the claims to proceed, primarily on the grounds of breaches of the employer’s fiduciary duties.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
