In what is believed to be the largest ERISA settlement stemming from poorly performing investment options in a 401(k) plan, UnitedHealth Group will pay $69 million in a class action case filed by plaintiff and whistleblower Kim Snyder. A former employee, Snyder claimed UnitedHealth Group failed to remove investments from a poorly performing Wells Fargo 401(k) plan. In so doing, employees invested in the fund lost hundreds of millions of dollars in potential retirement savings, Snyder alleged. Minnesota District Court Judge John Tunnheim gave final approval to the class settlement on June 12, 2025.
Sanford Heisler Sharp McKnight was the lead counsel on the case. Minneapolis-based Halunen Law attorney Susan Coler served as local counsel, providing legal advice and assistance. The case alleged that UnitedHealth had violated its fiduciary duties under ERISA by prudently and disloyally selecting, retaining, and monitoring the poorly performing Wells Fargo Target Fund Suite.
“This outcome is impressive and gratifying,” said Coler. “Snyder and the legal team worked tirelessly for four years to achieve this result, which will offer a direct financial remedy to class members who have been impacted. It was a pleasure to work with them and contribute to that result.”
Read more about this historic case settlement:
401k Specialist: UnitedHealth Group Agrees to Historic $69 Million 401(k) ERISA Settlement
USA Herald -UnitedHealth Settles $60M ERISA Suit
National Association of Plan Advisors: ‘Historic’ Excessive Fee Suit Strikes $69 Million Settlement
Law360 – UnitedHealth to pay $69M in Suit Over 401(k) Fund Roster

The founder of Halunen Law, Clayton Halunen spent more than 25 years as a trial lawyer seeking justice for employees, from delivery drivers to CEOs, in individual, class action, and whistleblower cases. Raised in northern Minnesota by parents who both experienced workplace discrimination, he built his career holding powerful companies accountable for illegal conduct, including some of the largest corporations in the country. His work includes a $1.5 billion settlement in a pharmaceutical fraud False Claims Act whistleblower lawsuit. Learn more about Clayton Halunen.