Eversource Energy Sued Over Fidelity 401(k) Target Date Fund (1)

New England energy provider Eversource Energy Service Co. was sued in Connecticut federal court by a former employee who says the company’s $3 billion 401(k) plan is full of expensive and overly risky target date funds from the plan’s trustee, Fidelity Management Trust Co.

The proposed class action, filed Tuesday in the U.S. District Court for the District of Connecticut, challenges the company’s decision to offer 401(k) investors a suite of actively managed target date funds from Fidelity, which isn’t named as a defendant. These actively managed Fidelity Freedom funds were both riskier and “dramatically more expensive” than Fidelity’s passively ...