Cisco 401(k) Plan Investors Stumble in BlackRock Fund Challenge

Cisco Systems Inc. became the latest employer to defeat challenges to the BlackRock Inc. target date funds in its 401(k) plan.

Retirement plan fiduciaries must make “difficult tradeoffs” and have leeway to exercise reasonable judgment, the US District Court for the Northern District of California said. They won’t be held liable for fiduciary imprudence under the Employee Retirement Income Security Act based solely on allegations that certain plan investments underperformed, the court said.

The allegations in the complaint against Cisco “cut against an inference of imprudence,” because they suggest the BlackRock funds charged low fees and enjoyed “significantly improved performance” ...