Ex-Quanta Workers Advance Lawsuit Over Fidelity 401(k) Funds

Quanta Services Inc. must face a proposed class action by former employees who say the electric power contractor chose inappropriate and risky target date funds as the default investment option in their retirement plan.

Quanta said the lawsuit was based on faulty comparisons between the funds in its plan and funds with different styles and strategies. Judge Alfred H. Bennett of the US District Court for the Southern District of Texas declined to dismiss the case on these grounds, saying in a Sept. 29 opinion that the proper benchmark by which to judge a 401(k) plan investment can’t be resolved ...