ServiceNow Sued Over Retirement Plan’s American Century Funds

Two former ServiceNow Inc. employees filed a proposed class action saying the California workplace software company’s 401(k) plan is filled with poorly performing target date funds that drain workers’ retirement savings.

The lawsuit challenges the software company’s decision to offer the actively managed suite of American Century One Choice target date funds in its $967 million retirement plan. These funds are invested too conservatively and have consistently underperformed their chief competitors, driving more than $22 million in lost retirement savings for ServiceNow employees, according to the complaint.

The lawsuit, filed Wednesday in the US District Court for the Northern ...