Nokia Sued by Ex-Workers Over 401(k) Investment Performance

Nokia of America Corp. was sued Friday by two former employees who say the telecommunications equipment maker’s retirement plan is plagued by poorly performing funds.

The proposed class action centers on two funds offered by the $9 billion 401(k) plan covering more than 27,000 current and former Nokia employees. These investments—a domestic large cap fund focused on information technology and communications companies and an international fund focused on developed and emerging markets—held about 11% of the plan’s assets and drove millions of dollars in losses by underperforming competitors, the employees alleged.

“Each of the at-issue funds materially and consistently underperformed ...