Takeda Pharmaceuticals Sued Over 401(k) Plan’s Target Date Funds

Three former Takeda Pharmaceuticals USA Inc. employees filed a proposed class action claiming a suite of poorly performing and untested target date funds in their $1.8 billion retirement plan drove tens of millions of dollars in losses, according to a complaint filed in the District of Massachusetts.

The suit challenges Takeda’s decision to offer workers the Northern Trust Focus Funds, which the former employees say “suffered from significant and ongoing quantitative deficiencies and turmoil.” Takeda selected these funds for the plan only one year after their creation and without any significant performance history to demonstrate they were prudent investment options, ...