Kotalik v. UnitedHealth Group Incorporated.
- Eric Tostrud
- 0:25-cv-01751
- U.S. District Court · District of Minnesota
- 12
In Kotalik v. UnitedHealth Group Incorporated, Magistrate Judge Elizabeth Cowan Wright granted plaintiffs' motion to consolidate two related lawsuits alleging that UnitedHealth Group misused forfeited 401(k) contributions in violation of federal retirement law, combining them into a single case called In re UnitedHealth ERISA 401(k) Litigation and appointing two attorneys as Interim Co-Lead Counsel for the plaintiffs.
Current and former participants and beneficiaries of the UnitedHealth Group 401(k) Savings Plan who allege that plan administrators improperly used forfeited retirement contributions; UnitedHealth Group Incorporated and related plan administrative entities named as defendants; attorneys appointed as class counsel.
What happened
In Kotalik v. UnitedHealth Group Incorporated (and the related Hendrickson case), two separate lawsuits were filed against UnitedHealth Group in 2025 by current or former employees who participate in the company's 401(k) retirement savings plan. Both lawsuits make similar allegations: that UnitedHealth Group and its plan administrators improperly used forfeited contributions — money employees lost when they left the company before fully vesting — in ways that violated the Employee Retirement Income Security Act (ERISA), the federal law governing employer-sponsored retirement plans. The plaintiffs sought to combine the cases and have the court appoint joint leadership for the litigation.
All parties agreed the cases shared enough common facts and legal questions to be combined for pretrial proceedings, but the defendants objected to also combining them for trial, and separately objected to using an 'In re' style case caption. The defendants argued that consolidating for trial was premature because the litigation was still in its early stages and new plaintiffs or claims might emerge. They also argued that an 'In re' caption did not comply with federal court rules.
Magistrate Judge Elizabeth Cowan Wright rejected both of the defendants' objections and granted the motion in full. The court found that the same logic supporting pretrial consolidation — avoiding duplicative discovery and motions, promoting efficiency, and reducing the risk of inconsistent rulings — applied equally to trial, and that the defendants' concerns about future developments were speculative and could be addressed later through a motion for separate trials if needed. The court also found that 'In re' captions are routinely used in this district, including in ERISA cases, and declined to follow the single out-of-district case the defendants cited. The court appointed Paul M. Secunda of Walcheske & Luzi, LLC and Gerald D. Wells, III of Lynch Carpenter, LLP as Interim Co-Lead Counsel, and ordered plaintiffs to file a single consolidated complaint within 30 days.
The detailed version
This order addresses a motion to consolidate two related ERISA (Employee Retirement Income Security Act — the federal law governing employer-sponsored benefit plans) class actions filed against UnitedHealth Group and related entities in the U.S. District Court for the District of Minnesota.
Background and Cases Involved
The first case, Kotalik v. UnitedHealth Group Incorporated (Case No. 25-cv-01751), was filed on April 28, 2025 by Theresa M. Kotalik, Debra A. Wisner, Kerry Clements, and Joseph L. Clement individually and as class representatives of participants and beneficiaries of the UnitedHealth Group 401(k) Savings Plan. The second case, Hendrickson v. UnitedHealth Group Inc. (Case No. 25-cv-02191), was filed on May 21, 2025 by Holly Hendrickson on behalf of herself, the Plan, and all similarly situated individuals. Both complaints alleged that defendants improperly used forfeited plan contributions — funds forfeited by employees who left before becoming fully vested — in violation of ERISA fiduciary duty provisions.
Procedural History
The court had previously stayed defendants' answer deadlines in both cases pending resolution of the consolidation motion. Plaintiffs filed the consolidation motion on July 16, 2025. A hearing was held on July 30, 2025. The parties agreed at the hearing to stipulate to dismissal of defendant David E. Strauss, and agreed on most procedural matters, but defendants continued to object to trial consolidation and the 'In re' caption.
Consolidation Analysis — Federal Rule of Civil Procedure 42(a)
The court applied the standard from Chill v. Green Tree Financial Corp., weighing risks of prejudice and confusion against the risks of inconsistent adjudications, burden on parties and judicial resources, time, and expense. The court found the common question of law and fact requirement clearly met and undisputed. The court rejected defendants' argument that trial consolidation was premature, finding the concerns about new plaintiffs and new causes of action speculative, and noting that Rule 42(b) allows for a motion for separate trials if circumstances change. The court ordered consolidation for both pretrial proceedings and trial.
Caption Dispute
Defendants argued that an 'In re' caption violated Federal Rule of Civil Procedure 10(a), citing one district court case from the Northern District of Illinois (Moyer v. Michaels Stores, Inc.). The court rejected this argument, noting that 'In re' captions are routinely used in this district in ERISA and other complex litigation, and that the single case cited was not binding. The consolidated action is captioned In re UnitedHealth ERISA 401(k) Litigation.
Appointment of Interim Co-Lead Counsel — Federal Rule of Civil Procedure 23(g)
The court applied the four Rule 23(g) factors: work done identifying and investigating claims, experience in class actions and ERISA litigation, knowledge of applicable law, and resources available. The court found that Attorney Paul M. Secunda of Walcheske & Luzi, LLC and Attorney Gerald D. Wells, III of Lynch Carpenter, LLP satisfied all four factors and appointed them as Interim Co-Lead Counsel. Defendants did not object to this appointment.
Key Orders
- Both cases consolidated for pretrial and trial proceedings before U.S. District Judge Eric C. Tostrud and U.S. Magistrate Judge Elizabeth Cowan Wright. - Case No. 25-cv-01751 (Kotalik) designated as the lead case. - All future filings to use the caption In re UnitedHealth ERISA 401(k) Litigation. - Case No. 25-cv-02191 (Hendrickson) administratively closed. - Plaintiffs must file a consolidated complaint within 30 days of the order. - Parties must meet and confer and file a proposed briefing/response schedule within 7 days after the consolidated complaint is filed. - Paul M. Secunda and Gerald D. Wells, III appointed as Interim Co-Lead Counsel with sole authority to communicate with defendants and the court on plaintiffs' behalf, negotiate settlements, and direct all plaintiffs' counsel.
The order was signed by U.S. Magistrate Judge Elizabeth Cowan Wright on September 5, 2025.
Reviewer note from the AI+
Read the full 12-page opinion on CourtListener, the free public archive maintained by the Free Law Project.