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03.14.2024
Benefits Companion Podcast
What the J&J Case Means for Plan Administrators
On this episode of Williams Mullen's Benefits Companion, host Brydon DeWitt discusses a recent ERISA class action case, Lewandowski v. Johnson & Johnson et al., that is a wake-up call for plan fiduciaries managing health and welfare benefit plans. He will discuss the case allegations and possible best practices that plan fiduciaries should consider as we enter a new era of increased litigation.
Key Takeaways:
- On February 5, 2024, a proposed class action lawsuit was filed against Johnson and Johnson, Inc. and the company’s Pension and Benefits Committee alleging a breach of fiduciary duties with respect to the selection of its pharmacy benefits manager (PBM) under its group health plan.
- While ERISA lawsuits for breach of fiduciary duty are most likely to focus on retirement plans, this suit is novel because a health and welfare benefit plan is under scrutiny.
- Plan fiduciaries should take notice as this case may prompt similar lawsuits.
- To mitigate risk, ERISA plan fiduciaries should apply the same precautions to their health and welfare plans as they do for their retirement plans.
- This may include a new committee formation, quarterly meetings with minutes, regular RFPs and additional guidance to ensure vendor pricing and compensation is fully understood.
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