MedAmerica $8.75M 401(k) ERISA Excessive Fees Settlement
Were you a participant in the MedAmerica Inc. 401(k) profit-sharing plan between Nov. 1, 2017 and Jan. 31, 2025? You could automatically receive a cash payment—minimum $10—from an $8.75 million settlement that resolves claims of excessive plan fees. Review your options below and, if needed, submit the rollover form by Sept. 16 2025 to direct your payout.
Quick Facts
- Settlement amount: $8,750,000
- Estimated payout: Pro rata, $10 minimum
- Class period: 11/01/2017 – 01/31/2025
- Key deadline: Rollover form due Sept. 16, 2025 (only for former participants who want a direct rollover)
- Final approval hearing: Oct. 16, 2025
- Case number: 3:23-cv-5648-RS, N.D. Cal.
Who Is Eligible?
The settlement class covers approximately 11,196 current and former employees who:
- Participated in the MedAmerica Inc. 401(k) profit-sharing plan at any time between Nov. 1, 2017 and Jan. 31, 2025, and
- Were not members of the MedAmerica Retirement & Benefits Committee during that period.
How Payments Are Calculated
After court-approved deductions for fees, costs, and service awards, the net settlement fund will be allocated pro rata based on each class member’s year-end account balance during the class period. For calculation purposes, balances held in the Schwab Bank savings account are doubled. Key takeaways:
- Minimum payment: $10 for every eligible participant.
- Even a single year’s balance (e.g., only on 12/31/2017 or 01/31/2025) guarantees the $10 minimum.
- If your calculated share is below $10, it will be increased to $10.
Do I Need to File a Claim?
No claim is required for most participants.
- Current participants with an open account: funds will be credited directly to the plan account.
- Former participants: you will receive a check by mail unless you prefer a direct rollover. To rollover, submit the Rollover Form by Sept. 16 2025.
Why the Case Settled
Plaintiffs alleged CEP America LLC (d/b/a Vituity) and the MedAmerica Retirement & Benefits Committee breached fiduciary duties under ERISA by:
- Allowing the plan to pay excessive administrative fees, and
- Offering a Schwab Bank savings account alleged to be an imprudent capital-preservation option.
The defendants deny wrongdoing but agreed to settle to avoid the uncertainty and cost of continued litigation.
Important Documents
Frequently Asked Questions
When will the MedAmerica ERISA Settlement pay out?
Checks or account credits will be issued after the court grants final approval (scheduled Oct. 16 2025) and any appeals are resolved. Payments typically follow several months after final approval becomes effective.
How do I know if I'm included in the MedAmerica $8.75M settlement?
If you participated in the MedAmerica Inc. 401(k) profit-sharing plan between Nov. 1 2017 and Jan. 31 2025—and were not on the Retirement & Benefits Committee—you are automatically part of the class.
Is proof of my 401(k) balance required to claim money?
No. The settlement administrator already has plan records and will calculate your share. Only former participants requesting a direct rollover must submit the rollover form.
What happens if my calculated share is less than $10?
Your distribution will be increased to the $10 minimum specified in the settlement agreement.
Who is administering the MedAmerica ERISA Settlement?
Rust Consulting, Inc. is the court-appointed settlement administrator. Contact them at 866-680-3212 or info@MedamericaERISASettlement.com.