Honeywell Unit Beats 401(k) Fund Claims but Can’t Escape Lawsuit

Employees at an aerospace company recently acquired by Honeywell International Inc. advanced one claim in a lawsuit over their retirement plan, but the case’s core allegations were dismissed for the third and final time.

The plaintiffs, investors in CAES Systems LLC’s 401(k) plan, didn’t show the plan’s target-date funds from American Century consistently underperformed valid benchmarks, Judge Eumi K. Lee said in a Sept. 19 opinion. These funds performed well during market downturns, and the plaintiffs’ criticisms of the funds aren’t based on comparisons to sufficiently similar alternatives, Lee said for the US District Court for the Northern District ...