Lockheed Martin’s motion to dismiss failed to persuade a federal district court judge to reject all claims in a proposed class action lawsuit based on breach of fiduciary duties under the Employee Retirement Income Security Act (ERISA). While the judge dismissed one count of the complaint for alleged breach of the duties of prudence and loyalty under ERISA regarding the reasonableness of 401(k) plan fees, he allowed the other four counts to proceed.
The case is Fezer et al. v. Lockheed Martin Corp. et al., Case Number 8:25-cv-00908, U.S. District Court for the District of Maryland.
Company retirement plan participants filed suit against Lockheed for offering underperforming proprietary target-date funds (TDFs) in its employee plans, which hold $50 million in assets. The proposed class alleges that Lockheed and its investment management subsidiary breached their fiduciary duties of prudence and loyalty under ERISA by selecting and retaining the TDFs despite their poor performance. According to the judge, the proposed class provided meaningful and specific benchmarks to back up its TDF underperformance claims. These benchmarks allowed the judge to compare the allegedly imprudent TDFs to other investment fund options. Furthermore, the judge declined to dismiss several ERISA-prohibited transaction claims.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
