Revival of Mental Health Benefits Class Action Against UBH Puts Fiduciary Duties in Focus

The federal district court overseeing the landmark David Wit, et al v. United Behavioral Health (UBH) class action has again held that defendant UBH violated its fiduciary duties by prioritizing its own interests over those of plan members when drafting internal coverage guidelines between 2011 and 2017.

Since 2014, Zuckerman Spaeder LLP has represented a class of more than 65,000 employee health plan participants who allege that UBH, the nation’s largest behavioral health claims administrator, breached its fiduciary duties by creating acute-focused internal coverage guidelines. Magistrate Judge Joseph C. Spero of the U.S. District Court for the Northern District of California found on August 5 that the class’s claim that UBH breached its fiduciary “duties of loyalty and care” remain intact following a 2022 ruling from the U.S. Court of Appeals for the Ninth Circuit that partially reversed earlier decisions and remanded the case for further consideration.

“This is a crucial step forward for our clients and reinforces the legal requirement that ERISA plan fiduciaries act solely in the plan members’ interests rather than prioritizing their own bottom line,” said Zuckerman Spaeder partner Caroline E. Reynolds. “UBH’s misconduct is precisely what ERISA’s imposition of fiduciary duties is designed to prevent.”

Judge Spero directed the parties to confer and submit proposals on next steps by September 12. The class is expected to seek revised remedies, including injunctive and declaratory relief.

Ms. Reynolds leads the litigation with Jason S. Cowart. Meiram Bendat of Psych-Appeal Inc. serves as co-counsel