Home Health Aides Accuse Employers, Reinsurer of Pilfering Millions from Benefit Plan

NEW YORK — Three home health aides have filed a purported class action against their employers and a captive reinsurer in New York federal court, accusing them of scheming to siphon millions of dollars in assets from an employee benefit plan.

In a complaint filed Nov. 27 in the U.S. District Court for the Eastern District of New York, the plaintiffs accuse the defendants of purportedly setting aside $35.5 million into the plan over a two-year period, but paying less than $10 million toward employee health benefits while retaining the surplus for themselves.

Plaintiffs are home health aides (HHAs) that …