MedStar Latest to Be Sued Over Retirement Plan’s Fidelity Funds

A former MedStar Health Inc. employee filed a proposed class action in the District of Maryland claiming the health system fills its retirement plan with unnecessarily expensive and risky target-date funds from Fidelity.

Elsa Reed’s lawsuit, filed Monday, centers on a suite of actively managed target-date funds from Fidelity Management Trust Co., which isn’t named as a defendant.

Reed says these funds, which MedStar uses as the default investment option in its $1.8 billion retirement plan, are more expensive and riskier than a similar suite of passively managed Fidelity funds, which Reed says have performed better during the recent Covid-19 ...