Wells Fargo, J&J Workers Tap COBRA Recipients to Save Cost Suits

Former Wells Fargo & Co. and Johnson & Johnson employees are pushing to keep a pair of novel health benefits cases alive following court dismissals by using COBRA recipients to support allegations the companies paid unnecessarily high drug costs in their plans.

The workers brought the two high-profile cases against the employers in July 2024 and February 2024, respectively, arguing they’re breaching their fiduciary duties under the Employee Retirement Income Security Act by paying elevated costs to their pharmacy benefit manager, Express Scripts.

The amended lawsuits are seen as a bellwether for employers who sponsor their own health plans, and ...