Ex-Quanta Services Employees File Class Suit Over 401(k) Funds

Electric power contractor Quanta Services Inc. was sued in Texas federal court by two former employees who say their $1.2 billion 401(k) plan offers inappropriate and risky target date funds as the default investment option.

The proposed class action takes aim at a suite of actively managed target date funds from Fidelity, which isn’t named as a defendant. These funds are both too risky for the average retirement investor and “dramatically more expensive” than a similar suite of passively managed funds offered by the same company, employees said in a complaint filed Monday in the US District Court for the ...