Singing River Health System in Pascagoula, Miss., is facing a lawsuit filed by employees alleging the system committed corporate and financial fraud and breach of contract when it announced plans to take the employees' pensions away, according to a Sun Herald report.
Earlier this month, Singing River froze its employee pension fund and announced plans to eventually liquidate the fund.
The lawsuit, filed by five current and former Singing River employees, alleges the system breached its contract with pension plan members because "alternatives existed to shore up the pension plan," according to the report.
The lawsuit specifically names Chris Anderson, former CEO of Singing River, the system's former CFO Mike Crews, retirement benefits committee member Stephanie Barnes Taylor, eight members of the Board of Trustees, pension plan administrator Transamerica Retirement Solutions and auditing firm KPMG.
The lawsuit claims Mr. Anderson, Mr. Crews and Ms. Barnes approved audits containing fraudulent material and "misrepresented the pension plan's condition," according to the report.
The employees are seeking to "make the pension plan whole," and to fine the parties named in the lawsuit $110 a day for every day the plan has not been funded, among other things, according to the report.
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