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Court denies Quest Diagnostics petition to dismiss ERISA suit

Court denies Quest Diagnostics petition to dismiss ERISA suit Bloomberg A Quest Diagnostics Inc. requisition form is displayed for a photograph at Perry Memorial Hospital in Princeton, Ill. A U.S. District Court judge in Newark, N.J., rejected a petition by Quest Diagnostics Inc. to dismiss allegations of ERISA violations filed by participants in a multiple employer 401(k) plan. The complaint focused on the plan s use of a target-date series, which participants alleged charged excessive fees for poor performance. Participants also maintained that the plan fiduciaries should have offered an index-based rather than actively managed target-date series. Taking the requisite holistic view of plaintiff s allegations regarding deficient plan management, dismissal at this early stage based on the consolidated complaint s discussion of the index suite would be inappropriate, U.S. District Court judge Susan D. Wigenton said Tuesday.

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