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District Court Finds Concealment of Administrative Fees for Self-Insured Plan Breaches Fiduciary Duties and Triggers 6-Year Statute of Limitations (PDF)
U.S. District Court for the Eastern District of Michigan
May 27, 2013
"[Blue Cross and Blue Shield of Michigan] also violated its fiduciary duty ... to disclose information to the Plaintiffs about its compensation, which necessarily included information about the Disputed Fees, even if [the plan sponsor] did not make a specific request for information.... BCBSM determined its own administrative fees by acting unilaterally with respect to the Disputed Fee; this type of self-dealing is a per se breach of [ERISA] Section 1106(b)(1).... Plaintiffs prove that BCBSM actively concealed their knowing misrepresentations and omissions in the contract documents in order to allay Plaintiffs' suspicion and prevent inquiry into Disputed Fees. [T]hey are entitled to damages from 1994 through 2011." [Hi-Lex Controls v. Blue Cross and Blue Shield of Michigan, No. 11-12557 (E.D. Mich. May 23, 2013)]
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