The U.S. District Court of New Jersey recently dismissed claims in a class action lawsuit against Johnson & Johnson (J&J) regarding the management of their prescription drug benefits. The plaintiffs alleged that J&J breached its fiduciary responsibilities under ERISA, resulting in higher payments for prescription drugs, premiums, deductibles, coinsurance, and copays, as well as lower wages and limited wage growth. However, the court ruled in J&J’s favor on the fiduciary breach claims, stating that the plaintiff lacked Article III standing due to speculative allegations about higher premiums and insufficient evidence of redressable injury.
Despite this, the court did not dismiss the claim that J&J failed to furnish requested plan documents, allowing this claim to proceed. Employers are advised to monitor developments in health and welfare litigation, review fiduciary responsibilities, and respond timely to ERISA plan document requests. This case highlights the importance of adhering to fiduciary duties and the potential legal implications of failing to do so.
Have Questions? and want to read more about the changes click Update on the Johnson & Johnson ERISA Fiduciary Lawsuit for more details.
We are dedicated to providing exceptional service, so please do not hesitate to contact our dedicated Total Benefit Solutions health insurance specialists at (215)-355-2121 or fill out the contact form below. We are available to answer any questions or address any concerns you may have.