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NFP Retirement Faces Another Schlichter Suit Over Flexpath Funds

May 17, 2022, 7:04 PM

Former Molina Healthcare Inc. employees filed a proposed class action accusing investment adviser NFP Retirement Inc. of steering their retirement savings into untested and poorly performing target date funds from Flexpath Strategies, according to a complaint filed in California federal court.

NFP breached its fiduciary duties to the Molina plan by moving nearly half the plan’s assets from “established and well-performing” target date funds from Vanguard into Flexpath funds that used a novel and untested strategy and carried extra layers of fees, Molina employees said in the complaint. This move toward Flexpath funds, which are proprietary investment products of NFP, ...