ServiceNow to Pay $925,000 to End 401(k) Target-Date Fund Suit

ServiceNow Inc. signed a $925,000 class settlement aimed at resolving litigation over the target-date funds in the software company’s 401(k) plan.

The proposed deal covers all ServiceNow 401(k) participants and beneficiaries who held American Century target-date funds in their accounts since February 2018—a “large percentage” of the plan’s 20,000 current and former participants. It represents 11.7% of the estimated losses participants demanded during settlement negotiations, according to a Thursday motion asking that the deal receive preliminary approval.

• The lawsuit centers on a suite of target-date funds from non-party American Century, which ServiceNow workers challenged as overly conservative investments that lost ...