Multiple Employer 401(k) Sponsor Sued Over Target-Date Funds

Three participants in a 401(k) plan sponsored by Plan Professionals LLC filed a proposed class action challenging a suite of target-date funds from American Century Investments that they say produced subpar returns.

The lawsuit centers on a pooled employer plan that provides retirement benefits to workers at dozens of participating companies. The plan’s default investment option was a series of target-date funds from non-party American Century that held more than half the plan’s assets despite dramatically underperforming similar investments available from other asset managers, the participants said in a complaint filed Monday in the US District Court for the District ...