Molina Healthcare Workers Get Trial Over 401(k)'s Flexpath Funds

Former Molina Healthcare Inc. workers can go to trial on most claims in their class action challenging the reason for the choice of Flexpath Strategies LLC target date funds as their retirement plan’s default investment option.

The workers presented sufficient evidence to suggest that these Flexpath funds were added to the plan through an imprudent process, Judge Stanley Blumenfeld Jr. said in a summary judgment opinion allowing claims to advance against Molina and Flexpath. When the funds were first suggested to Molina, they didn’t yet exist and had no performance history by which to recommend them, and it’s undisputed that ...