Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Microsoft Is Latest Employer Sued Over BlackRock 401(k) Funds

Aug. 3, 2022, 4:19 PM

Microsoft Corp. is joining a growing list of employers sued over the BlackRock Inc. target date funds in their 401(k) plans, with a federal lawsuit filed in Washington days after Citigroup, Capital One Financial, and Booz Allen Hamilton faced similar allegations.

The proposed class action accuses Microsoft of mismanaging its $38 billion 401(k) plan by selecting target date funds from BlackRock—which isn’t named as a defendant—as the plan’s default investment option. These funds significantly underperformed similar funds from competitors and caused plan participants to lose out on millions of dollars in retirement savings, according to the lawsuit.

The ...