On March 30, 2026, Miller Shah LLP filed a class action lawsuit on behalf of participants in the Encompass Health Corporation Retirement Investment Plan ("Plan") against Encompass Health Corporation ("Encompass"), the Encompass Health Board of Directors, and the Encompass Health Benefits Committee for breaches of their fiduciary duties under the Employee Retirement Income Security Act ("ERISA").
The Encompass Health Retirement Investment Plan is among the largest defined contribution plans in the United States, with approximately 27,000 participants and $1.7 billion in total account balances and assets. The complaint alleges that despite the significant resources available to Encompass and the Plan's fiduciaries, Defendants caused the Plan to incur unnecessary expenses and failed to appropriately monitor the Plan's investments.
The Complaint alleges that from 2020 to 2024, Defendants failed to use plan forfeitures to reduce the Plan's expense burden. Instead, Defendants prioritized using forfeitures to reduce Encompass' contribution obligations to the plan. The Complaint further alleges that Defendants' imprudent retention of the MainStay Fund caused significant losses to the plan.
The city is represented by James C. Shah, James E. Miller, Laurie Rubinow, and Alec J. Berin of Miller Shah LLP as well as local counsel in Alabama.
The case is Hopper et al v. Encompass Health Corporation et al., case number 2:2026cv00533, in the U.S. District Court for the Northern District of Alabama.