Lockheed Martin Fails to Toss Retirement Mismanagement Lawsuit

Lockheed Martin Corp. must defend a proposed class action challenging its decision to offer target-date funds managed by an in-house subsidiary as the default investment option in three retirement plans covering its workforce.

Lockheed is accused of offering retirement funds that underperformed competitors while funneling financial benefits to a subsidiary, which is enough to state a viable claim for fiduciary imprudence and disloyalty under the Employee Retirement Income Security Act, Judge Theodore D. Chuang said. The judge’s order, docketed April 17 in the US District Court for the District of Maryland, also allowed the plaintiff employees to move forward ...