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Walgreens Sued For $300 Million Over Retirement Plan Funds (1)

Aug. 9, 2019, 7:38 PMUpdated: Aug. 9, 2019, 8:36 PM

Walgreen Co. filled its retirement plan with expensive and poorly performing target-date funds from Northern Trust, which caused workers to lose “upwards of $300 million in retirement savings,” according to a proposed class action filed Aug. 9.

The lawsuit accuses Walgreens of allowing nearly 40% of its retirement plan’s assets, which totals more than $3 billion, to be invested in a suite of 11 target-date funds from Northern Trust. Walgreens retained the funds and added additional Northern Trust options to the plan even though the funds underperformed comparable investments for nearly a decade, the lawsuit claims.

The 12 named plaintiffs ...