JPMorgan Sued Over Stable Value Fund in $44 Billion 401(k) (1)

JPMorgan Chase Bank NA was sued Friday by a former employee who says the bank’s $44 billion 401(k) plan improperly offers an in-house stable value fund that underperforms competitors.

The lawsuit takes aim at the JPMorgan Stable Value Fund, which plaintiff Alexandro Gonzalez says provided significantly lower rates of return than similar options available from other companies while exposing workers to greater risk. The bank’s decision to offer this fund improperly benefited the insurance companies that offered the fund’s underlying investments, according to the lawsuit.

“By selecting the JPMorgan SVF with underperforming crediting rates, Defendants failed to provide participants with ...