Quest Diagnostics Sued Over Fidelity Funds in Retirement Plan

A proposed class action filed in New Jersey federal court accuses Quest Diagnostics Inc. of filling its $3.9 billion profit sharing plan with needlessly expensive and inappropriately risky target date funds.

The lawsuit, filed Monday by Quest plan participant Lawanda Lasha House Johnson, challenges the company’s decision to make the plan’s default investment option a suite of target date funds from Fidelity Management & Research Co., which isn’t named as a defendant. House Johnson claims the plan offered the actively-managed suite of Fidelity Freedom Funds, which was “dramatically more expensive” and riskier than Fidelity’s “Index suite” of target date funds. ...