MathWorks Sued Over 401(k) Fund Performance, Forfeiture Usage

Software company MathWorks Inc. was hit with a proposed class action claiming it offered workers poorly performing investment options in their 401(k) plan while mishandling forfeited contributions.

The lawsuit, filed Thursday in the US District Court for the District of Massachusetts, centers on an actively managed fund from New York Life Investment Management, which isn’t a party to the lawsuit. This fund was the only large-cap growth fund offered by the MathWorks plan and held about $147 million of the plan’s assets, even though it charged high fees while consistently underperforming its benchmark and similar funds from other companies, plaintiffs ...