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Allstate Target Date Funds Lawsuit

The plaintiff in this case, a former participant in the Allstate 401(k) Savings Plan, claims that plan fiduciaries breached duties under ERISA by continuing to offer “poorly performing target-date funds” – the Northern Trust Focus Funds – within the Plan’s investment menu and as a QDIA. The lawsuit claims that the Plan lost over $65 million in retirement savings since 2014 by offering the Funds in the Plan and failing to remove them despite sub-par performance versus peers, and seeks to “enforce the defendants’ personal liability” under ERISA to make good to the plan all losses from October 30,2014 through December 31, 2019. Of note, the Northern Trust Focus Funds are also the alleged underperforming funds in another lawsuit filed by participants in the Walgreen Profit Sharing Retirement Plan in August 2019.

www.plansponsor.com; November 2, 2020.