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NFP, Natixis targeted in 401(k) lawsuits
At the heart of NFP case is the flexPath target-date series, which was added to Wood Group plan in 2016, when it was essentially brand new. Schlichter Bogard & Denton brought the case.
February 26, 2021 3 MINS
A new 401(k) lawsuit is targeting NFP Retirement, its flexPath subsidiary and a plan sponsor over the use of proprietary investments that had higher costs than third-party options.
The Feb. 16 class-action suit is brought by Schlichter, Bogard & Denton, the firm with the longest history of 401(k) plan litigation.
At the heart of the case is the flexPath target-date series, which was added to the plan in 2016, when it was essentially brand new. That alone went against the plan’s investment policy statement, which required options to have a five-year performance track record, according to the complaint. The sponsor to the $2.4 billion plan is the Nevada-based Wood Group.
401(k) lawsuit update: 2 dismissals, 2 settlements
Abbott Labs and Genentech won dismissals in cases against them, although plaintiffs can refile their complaints. Cerner Corp. and BlackRock have reached settlements in class-action cases against them.
February 19, 2021 3 MINS
Abbott Laboratories this month fended off for the second time a 2020 lawsuit from a retirement plan participant whose account was fraudulently raided of $245,000.
The plaintiff, Heide Bartnett, also sued the plan record keeper, Alight Solutions, which has not succeeded in getting the claims against it tossed.
In early 2019, an identity thief began corresponding with the plan’s customer service center and eventually managed to get the bulk of Bartnett’s 401(k) assets transferred to a brand-new bank account, according to court records. Since then, Bartnett has been able to recoup about $108,000.
A version of this article originally published in April 2017.
Because they re just starting out, early career accumulators loosely defined as people in their 20s and 30s don t typically have much in the way of financial capital (unless they re technology savants or supermodels, that is). Not only are their earnings often low relative to where they ll be in the future, but new college grads may also be digesting college debt.
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Target-date mutual fund sales went negative in 2020, potentially for the first time in the products’ history.
Overall, the retirement savings products bled $6.7 billion, representing the first such instance of negative net sales since Morningstar began tracking them in 1994, according to a report this week from the ratings and research firm.
However, that figure does not give a complete picture of demand for target-date products. While investors’ redemptions of target-date mutual fund were much higher last year than in recent history, for years sales have been shifting to collective investment trusts, particularly among large retirement plans, at the expense of target-date mutual funds. Over the past six years, CITs have more than doubled their market share of target-date products, according to Morningstar.