Johns Hopkins Retirement Plan Draws Suit Over Target-Date Funds

Johns Hopkins Health System Corp. mismanages a retirement plan covering about 34,000 people by offering poorly performing target-date funds that drove $55 million in lost retirement savings, a federal lawsuit alleges.

The proposed class action takes aim at a suite of target-date funds from American Century Investments, which isn’t named as a defendant. These funds remained in the Johns Hopkins plan for more than eight years despite their high fees and consistent underperformance “under all investment metrics,” two former employees said in a complaint filed Feb. 6 in the US District Court for the District of Maryland.

• The lawsuit accuses ...