Wood Group, Flexpath Beat 401(k) Fund Class Action After Trial

Wood Group US Holdings Inc. retirement plan investors challenging target date funds from Flexpath Strategies LLC saw their claims fail after a nine-day, judge-only trial.

Flexpath chose its own target date funds as the default investment option for Wood’s retirement plan after spending months analyzing the plan’s participant demographics, investment preferences, and alternative options, Judge James V. Selna of the US District Court for the Central District of California said in a Feb. 23 opinion. The decision was neither imprudent nor disloyal, Selna said, noting that Flexpath received no additional financial benefit for selecting these funds.

“The objective facts ...