Labor Department, Multiple Employer Fund Settle for $1.3 Million

A health-care arrangement covering employees of more than 700 companies will pay at least $1.3 million to settle a US Labor Department lawsuit accusing it of wrongly commingling the assets of unrelated employers.

The department on April 24 asked Judge Robert W. Gettleman to approve a consent order requiring Apex Management Group I Inc. to pay at least $1.3 million—and up to more than $1.7 million—to restore losses to the multiple employer welfare arrangement. The deal also requires Apex to revise its fees and disclosure practices and to abstain from serving as a benefit plan fiduciary unless appropriate fee disclosures ...