ServiceNow Looks to Kill Challenge to 401(k) Target Date Funds

California software company ServiceNow Inc. asked a federal judge to dismiss litigation over its 401(k) plan’s American Century target date funds, saying the complaint doesn’t include meaningful comparisons that could support an ERISA case.

It’s “black-letter law” that the Employee Retirement Income Security Act doesn’t require plan fiduciaries to choose the best-performing investment, ServiceNow said in a motion to dismiss filed Monday. The lawsuit criticizes the company’s decision to offer American Century funds, but the plaintiffs don’t put forth the necessary “meaningful benchmark” to support their claim that these funds were imprudent, the company said.

The funds held up as ...