March 2026
Natashia Wright, Associate Director Benefits Compliance
On March 9, 2026, U.S. District Judge, Jennifer Rochon, ruled that JPMorgan Chase employees can move forward with portions of their lawsuit alleging the bank mismanaged its health and prescription benefits program. The plaintiffs claim that JPMorgan’s actions caused them to overpay for prescription drugs and premiums.
The proposed class action represents tens of thousands of workers and alleges that JPMorgan violated the Employee Retirement Income Security Act of 1974 (“ERISA”). The lawsuit focuses on the bank’s process for hiring CVS Caremark, a subsidiary of CVS Health, citing conflicts of interest due to CVS Health’s relationship as an investment banking client of JPMorgan.
While Judge Rochon dismissed allegations that JPMorgan breached certain fiduciary duties—stating that corporate decisions do not automatically become fiduciary acts under ERISA—she allowed claims related to “prohibited transactions” to continue. She noted that, based on a recent Supreme Court decision, plaintiffs only need to plausibly allege that such prohibited transactions took place; JPMorgan may still raise affirmative defenses as the case continues.
Recently, the courts have dismissed similar lawsuits against other major corporations, such as Wells Fargo & Co. and Johnson & Johnson. However, litigation against ERISA health plans has increased since the passage of the Consolidated Appropriations Act of 2021 which strengthened fee disclosure rules for service providers, including pharmacy benefit managers (“PBMs”).
The U.S. Department of Labor recently proposed new ERISA rules to improve transparency around PBM compensation. These rules would require PBMs to disclose all forms of direct and indirect compensation, including payments from drug manufacturers, spread compensation, and price protection arrangements, among others.
Further, the Consolidated Appropriations Act of 2026 will require PBMs to regularly report details about prescription drug benefits, including out-of-pocket costs for participants and reimbursement amounts to pharmacies. As scrutiny of health plan fees and PBM arrangements grows, experts anticipate more class action lawsuits. The JPMorgan case highlights the importance of health plan sponsors closely monitoring service providers, reviewing fee disclosures, and maintaining thorough documentation to defend against potential litigation and fulfill their fiduciary responsibilities under ERISA.
Employer Action Items
- Stay informed about ongoing legal developments and class action trends affecting employer-sponsored health plans to anticipate and mitigate your litigation risks.
- If needed, work with your broker for guidelines to meet ERISA fiduciary responsibilities.
- Review and strengthen oversight of health and prescription benefits programs to ensure compliance with ERISA and to avoid potential conflicts of interest.
- Establish procedures for regular reporting of prescription drug benefit details, including participant out-of-pocket costs and pharmacy reimbursement amounts, as required by future legislation.
- Prepare for new ERISA regulations by ensuring PBMs disclose all forms of compensation, including direct and indirect payments, spread compensation, and price protection arrangements.
Additional Information and Resources
- Consolidated Appropriations Act, 2026 Section-by-Section
- Fact Sheet: Proposed Pharmacy Benefit Manager Fee Disclosure Rule | U.S. Department of Labor
For more information
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