Philips Sued Over 401(k) Plan Stable Value Fund, Forfeiture Use

Three former Philips North America LLC employees filed a proposed class action saying the electronics and health technology company mismanages their retirement plan by offering a poorly performing stable value fund and mishandling forfeited contributions.

The lawsuit, filed Tuesday in the US District Court for the District of Massachusetts, takes aim at the $5.8 billion retirement plan’s stable value fund from Prudential Financial Inc. This fund, which is designed to provide a modest, guaranteed rate of return and protect against losses, produced much lower returns than similar options from competitors while providing a “windfall” for Prudential, according to the ...