Discount Tire Sued Over 401(k) Plan’s Target Date Fund Suite

A former participant in Discount Tire Co.'s 401(k) plan filed a proposed class action saying the plan’s target date funds from American Century Investments were poor performers that should have been replaced.

Nearly half the assets in the tire retailer’s billion-dollar 401(k) plan were invested in American Century target date funds as of December 2023, the participant said in his complaint. These funds underperformed relevant benchmarks for at least 15 years, and they fared worse than the vast majority of peer funds over the past decade, according to the complaint.

The lawsuit, docketed Wednesday in the US District Court ...