Brookfield Asset Management Cleared in 401(k) Plan Fund Lawsuit

Brookfield Asset Management LLC escaped a proposed class action challenging its decision to tap target-date funds from American Century Investments as the default investment in its employees’ 401(k) plan.

The lawsuit doesn’t allege the type of serious investment underperformance that could support viable claims under the Employee Retirement Income Security Act, Judge Pamela A. Barker of the US District Court for the Northern District of Ohio said Thursday. These funds had positive returns and “only slightly underperformed” the plaintiffs’ suggested benchmarks, which is insufficient to show that Brookfield breached its fiduciary duties by keeping the funds in the plan, Barker ...