SAS Institute Defeats 401(k) Forfeiture, Target-Date Fund Suit

SAS Institute Inc. is free from a proposed class action challenging the target-date funds and forfeiture usage in its 401(k) plan, after a federal judge said workers received all they were promised.

Judge James C. Dever III dismissed claims centering on the performance of target-date funds from JPMorgan Chase & Co., which isn’t a party to the lawsuit. The employees didn’t compare these funds to a meaningful benchmark, Dever said, and the underperformance they alleged was 3% “at most,” which isn’t enough to support fiduciary breach claims under the Employee Retirement Income Security Act.

Dever’s order, docketed Feb. 13 ...