Novant Health violated ERISA when it allowed its Retirement Plus Plan to pay millions of dollars in excessive fees to third-party service providers, including the plans broker, a class action lawsuit filed Wednesday by current and former Novant employees claims.
The employees allege the broker, D.L. Davis & Company, headed by principal Derrick Davis, received excessive fees for the allegedly minimal services provided to the plans. According to the complaint, in 2009 Davis received $827,885 in commissions. In 2012, according to the plans 5500s, Davis was receiving nearly $6 million in brokerage commissions. The 5500s were amended just a few weeks ago to change this amount to about $3.7 million
