Sutter Health ERISA Settlement Approved in $4.3 Million Deal

SACRAMENTO (LN) — A federal judge on Monday granted final approval of a $4.3 million ERISA class action settlement against Sutter Health, ending the litigation over the healthcare system’s 403(b) savings plan.

U.S. District Judge Lawrence K. Karlton signed the Final Approval Order and Judgment in In re Sutter Health ERISA Litigation, finding the settlement fair, reasonable, and adequate for the class of participants and beneficiaries.

The court certified the settlement class under Federal Rule of Civil Procedure 23(b)(1), defining it as all participants and beneficiaries of the Sutter Health 403(b) Savings Plan during the class period, excluding the defendant, the Defined Contribution Oversight Committee, and the Board of Directors.

The $4.3 million settlement fund will be distributed according to a court-approved Plan of Allocation. Participants with active accounts will receive distributions without filing claims, while former participants without active accounts must submit a modest claim form.

Class Counsel Miller Shah LLP and Capozzi Adler, P.C. were awarded about $1.43 million in fees and expenses, payable from the settlement fund within 35 business days of the effective date. The court found the fees merited by the counsel’s efforts and the results achieved.

Class Representatives Christina Bonicarlo, Adam Blackburn, Tabitha Hoglund, and Nicole Garcia each received $12,500 as compensatory awards for costs and expenses related to their representation of the class.

The court found the settlement was negotiated vigorously at arm’s length under a neutral mediator and fell within the range of values obtained in similar cases. The judge also overruled any objections filed against the settlement.

The operative complaint and all claims are dismissed with prejudice, and the parties are permanently enjoined from suing the released parties on any released claims.

The settlement class excludes the individual members of the Defined Contribution Oversight Committee and the Board of Directors of Sutter Health and their beneficiaries.