Three 401(k) plan participants filed suit against Takeda Pharmaceuticals U.S.A. Inc., Deerfield, Ill., alleging the company, its executive compensation committee and officials mismanaged the investment options in the plan.
The suit, filed Tuesday in U.S. District Court in Boston, said the company and other defendants violated the Employee Retirement Income Security Act of 1974 by utilizing a target-date fund lineup that underperformed compared to comparable target-date funds.
The suit specifies the company breached its fiduciary duties under ERISA by using a suite of "unproved collective investment trust target date funds as investment options in the plan, known as the Northern Trust Focus Funds."
As of Dec. 31, the Takeda Pharmaceuticals U.S.A. Inc. Savings and Retirement Plan had $4.1 billion in assets, according to the company's most recent Form 5500 filing.
“Multiple funds in the plan were historically poor performing for numerous years. Their continuation in the plan cost Takeda employees and retirees substantial retirement assets,” said Jerome Schlichter, founding and managing partner at Schlichter, Bogard & Denton, attorney for the plaintiffs, in an email.
Amy McCarthy, spokeswoman for Takeda Pharmaceuticals, could not be immediately reached for comment.
