ConocoPhillips Sued Over 401(k) Plan’s Phillips 66 Stock Fund

ConocoPhillips Co. workers lost more than $260 million by investing their 401(k) plan assets in Phillips 66 stock after the companies separated in a 2012 spinoff, two plan participants alleged in a class action complaint.

The plan’s “heavy, overly-concentrated position” in a single security should have served as a red flag prompting plan fiduciaries to diversify, plaintiffs John and Frances Quigley said in the complaint. The company acknowledged this risk by eliminating another single-stock investment from the plan and by limiting the amount of Phillips 66 stock in its pension plan, but it nevertheless allowed hundreds of millions of ...