Lehigh Valley Health Network $1.15M ERISA Settlement

Individuals who participated in the Lehigh Valley Health Network 403(b) savings plan between Oct. 21, 2018, and Nov. 19, 2025, may be eligible to claim a cash payment from a class action settlement.

Lehigh Valley Health Network Inc. agreed to pay $1,150,000 to resolve a class action lawsuit alleging it mismanaged its 403(b) savings plan. The lawsuit claimed the company failed to properly monitor and control recordkeeping fees and improperly used forfeited funds in violation of fiduciary duties under the Employee Retirement Income Security Act.

Who are the class members?

Class members must meet one of the following criteria:

• They participated in the Lehigh Valley Health Network 403(b) savings plan at any time between Oct. 21, 2018, and Nov. 19, 2025.
• They are a beneficiary of a deceased person who participated in the plan during this period.
• They are an alternate payee of a person subject to a qualified domestic relations order who participated in the plan during this period.

The settlement administrator will use plan records to identify eligible class members.

How much can class members receive?

The total settlement fund is $1,150,000. After deductions for attorneys' fees, litigation expenses, service awards and administrative costs, the settlement administrator will distribute the remaining net settlement amount to class members. The actual amount each class member will receive depends on their account balances during the class period and the number of eligible participants.

The calculation process is as follows:

• The settlement administrator will total each class member's quarterly account balances during the class period.
• It will then divide each class member's total balance by the sum of all class members' balances to determine their share.
• It will then allocate the net settlement amount proportionally based on these shares.

No action needed to receive compensation

Class members do not need to file a claim to receive compensation. The settlement administrator will use plan records to determine eligibility and calculate payment amounts.

Former participants who have not updated their address should contact the settlement administrator to ensure they receive payment.

Settlement administrator's mailing address: Kiskeravage, et al. v. Lehigh Valley Health Network Inc., et al., c/o RG/2 Claims Administration LLC, P.O. Box 59479, Philadelphia, PA 19102-9479

Payout options

• Current participants: Individuals with a positive account balance in the plan as of the calculation date
• Former participants: Individuals who previously participated but do not have an active account as of the calculation date

$1.15 million settlement fund breakdown

The $1,150,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $383,333.33
• Attorneys' costs and expenses: Up to $75,000
• Service awards to class representatives: Up to $5,000 each (up to $25,000 total)
• Payments to eligible class members: Remainder after above deductions

Important dates

• Objection deadline: Feb. 24, 2026
• Fairness hearing: March 26, 2026

When is the LVHN ERISA settlement payout date?

The settlement administrator will issue payments after the court resolves any appeals and grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged Lehigh Valley Health Network Inc. and related defendants breached their fiduciary duties under ERISA by mismanaging the 403(b) savings plan. The plaintiffs claimed the defendants failed to properly control recordkeeping and administrative fees and improperly used forfeited employer contributions to offset other employer contributions instead of paying plan expenses.

The defendants denied all allegations but agreed to settle to avoid the uncertainty, cost and risk of continued litigation.

Sources

1. Settlement notice
2. Settlement agreement