Beer Never Broke My Heart … Recent 401(k) Lawsuit Challenges Stable Value Fund

A recently filed proposed class action lawsuit against Molson Coors' 401(k) plan fiduciaries highlights the importance for 401(k) plan fiduciaries to carefully select and continually monitor all 401(k) plan investment options, including capital preservation options. The lawsuit alleges that plan fiduciaries breached their fiduciary duties of prudence and loyalty by selecting the Fidelity stable value fund offering and retaining it in the plan, even though it was significantly riskier and provided inferior returns than comparable funds. The lawsuit emphasizes that over $200 million was invested in the plan's Fidelity stable value fund during each year at issue. Interestingly, this lawsuit focuses solely on the plan's stable value fund investment option. At this early stage, the court has yet to rule on the lawsuit and it is unknown whether the lawsuit has merit.