J&J & ERISA Fiduciary Responsibilities Webcast

A class action lawsuit was just filed against drug manufacturer Johnson & Johnson (J&J) in its capacity as an employer and plan sponsor.

The suit alleges that J&J breached its fiduciary duties by not taking proper measures to ensure its plan costs were reasonable as well as failing to exercise prudence in selecting its pharmacy benefit manager (PBM) and agreeing to undesirable contract terms. Specifically, the suit accuses J&J of mismanaging its employees’ drug benefits, resulting in employees significantly overpaying for certain drugs. 
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This lawsuit is an example of the recent uptick in impending lawsuits regarding compliance with recent transparency rules, reinforcing the need for ERISA fiduciary governance.

To help navigate these responsibilities, Lockton held webcast that walked through the key steps of proper fiduciary governance for employers. Click here for a replay of the webcast

​We have also created a Fiduciary Governance Toolkit to help ensure clients are well-versed on and are meeting their fiduciary duties. The Lockton Fiduciary Governance Toolkit includes:

• A roadmap for establishing a health and welfare plan committee to formalize plan decision-making.
• A checklist of key plan administrative functions that welfare benefit plan fiduciaries are responsible for managing.
• Sample policies to address common and uncommon situations.
• Sample welfare plan governance committee minutes to illustrate how to document prudent fiduciary processes to avoid big headaches later.

If you have questions or would like to speak with one of Lockton's Compliance attorneys, please reach out at [email protected] or 617-840-4515