Sig Sauer’s 401(k) Target-Date Funds Drive Would-Be Class Suit

Sig Sauer Inc. was sued Tuesday by a former employee who says the firearms manufacturer’s retirement plan has performed poorly because of a flawed suite of target-date funds that should have been replaced.

The company’s $100 million retirement plan invested more than 65% of its assets in target-date funds from American Century Investments, which isn’t named as a defendant. These funds cost more and performed worse than similar options from competitors, causing millions of dollars in harm to the plan, plaintiff Michael Carter said in a proposed class complaint filed in the US District Court for the District of New ...