A retired chief philanthropy officer and four other former employees at Renton, Wash.-based Providence filed a lawsuit April 17 against the system, alleging the organization failed to monitor retirement plans that lost nearly $70 million in five years.
The lawsuit alleges Providence kept an “underperforming” investment option, Invesco Diversified Dividend Fund R5, for 401(k) plans for about a decade. The 51-hospital system is accused of breaching its fiduciary duties and violating other parts of the Employee Retirement Income Security Act.
“More suitable large value/dividend strategy funds” were readily available, the lawsuit said, alleging Providence retained an “imprudent” fund that resulted in the plans and participants losing nearly $70 million of assets between 2020 and 2025.
Five former employees at Providence filed the proposed class action lawsuit:
- Peter Brennan, who served as chief philanthropy officer of Providence Southwest Washington Foundation from 2013 to 2025
- Janee Evans, a hospital billing senior analyst from 2005 to 2020
- Corey Moriyama, an employee labor relations consultant from 2018 to 2022
- Stephanie Schaefer, PsyD, a psychologist and program manager of caregiver wellness from January 2022 to December 2022
- Pam Warren, senior clinical manager from 2007 to 2023
The plaintiffs are seeking the U.S. District Court of Western Washington to confirm how much money was lost and order Providence to pay back that amount.
Providence told Becker’s it cannot comment on ongoing litigation.
The post Former Providence workers sue system over alleged 401(k) losses appeared first on Becker's Hospital Review | Healthcare News & Analysis.
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