US Labor Department files suit to appoint independent fiduciary to distribute welfare benefit plan funds of bankrupt company formerly located in Penn Hills, Pa.

Date of Action: Aug. 29, 2014

Type of Action: Complaint

Name(s) of Defendant(s): World Health Alternatives Inc. and World Health Alternatives Health and Welfare Benefits Plan

Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the Secretary of Labor filed a complaint alleging the following:

World Health Alternatives Inc. is an inactive Florida corporation whose operations were primarily conducted from its former location in Pittsburgh, Pa. On Nov. 1, 2004, the company established the World Health Alternatives Health and Welfare Benefits Plan for the benefit of its employees and their dependents.  On Feb. 20, 2006, the company filed for Chapter 11 bankruptcy protection. On Oct. 31, 2006, the company’s bankruptcy petition was converted to a Chapter 7 liquidation.

The Department found that from Feb. 20, 2006, through April 28, 2006, covered plan benefits were not paid to plan participants. On April 17, 2007, the Department filed a proof of claim in the company’s bankruptcy in the amount of $747,160.42, representing the total amount of unpaid medical claims. On June 12, 2014, the bankruptcy court approved a distribution in the amount of $206,230.65 to satisfy the Department’s claim. 

Resolution: The lawsuit is seeking the removal of the company from all fiduciary positions, with respect to the plan, and the appointment of an independent fiduciary to receive and administer the payment from the bankruptcy estate and distribute those funds to the affected plan participants and their beneficiaries.

Court: United States District Court for the Western District of Pennsylvania

Docket Number: 2:14-cv-01168-CRE

U.S. Department of Labor materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling (202) 693-7828 or TTY (202) 693-7755.