Southcoast Hospitals Retirement Plan Suit Settles for $2 Million

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Massachusetts-based Southcoast Hospitals Group Inc. will pay $2 million to settle a federal class action claiming it mismanages its $886 million retirement plan by filling it with overly expensive investment options and charging excessive administrative fees.

The Nov. 19 deal resolves an 11-month-old lawsuit claiming Southcoast plan fiduciaries failed to adequately monitor the fees and performance of the plan’s investment options or take action to rein in the plan’s “astronomical” record keeping fees. Between 5,000 and 10,000 plan participants are expected to benefit under the deal, according to settlement papers filed in the U.S. District Court for the District of …