Current and former employees of PPL Corp. have sued the company, a subsidiary and fiduciaries, alleging violations of ERISA in the management of four retirement plans.
"Instead of acting diligently and prudently, defendants retained a suite of unproven collective investment trust target date funds as investment options in the plans, known as the Northern Trust Focus Funds," said the complaint filed Jan. 12 in a U.S. District Court in Allentown, Pa.
"The Focus Funds suffered from significant and ongoing quantitative deficiencies and managerial turnover resulting in massive underperformance relative to that of well-established, prudently managed, comparable target date funds that were available to the plans," said the complaint in the case of Binder et al. vs. PPL Corp. et al.
The plaintiffs are seeking class action status. Northern Trust isn't a defendant.