Related: $69M record-setting settlement in UnitedHealth’s ‘poorly performing’ 401(k) suit, finalized by judge

So far this year, similar underperforming plan funds lawsuits have been filed:

Nokia was hit with a $100 million 401(k) underperforming plan funds lawsuit in July, on behalf of more than 27,000 employees.
UnitedHealth agreed to pay a record-setting $69 million settlement in June in its “poorly performing” 401(k) target date funds lawsuit, which allegedly depleted the retirement savings of 350,000 employees.
Discount Tire was sued by 16,000 employees in May, alleging the plan’s target date funds from American Century Investments should have been replaced.

In April, the Supreme Court took a worker-friendly approach on behalf of the Cornell University’s 28,000 employees in it 403(b) excessive fees suit – another recurring theme in the recent surge of retirement plan lawsuits. “This ruling effectively invites a new wave of litigation that could burden plan fiduciaries,” said Tim Rouse, Executive Director of the SPARK Institute, whose members serve over 110 million participants in 401(k) and other defined contribution plans.

Instant Insights /

3M hit with $100M lawsuit over retirement plan’s 'underperforming’ target-date funds

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