Parties Involved
The suit was filed by participants James Sims and Antonio Smith on behalf of the Nokia Savings/401(k) Plan, naming Nokia of America Corporation and various internal fiduciary committees and advisors as defendants.
Allegations
The complaint asserts multiple fiduciary breaches under ERISA, including:
1. Failure to prudently select or monitor investments.
2. Failure to identify and remove underperforming funds.
3. General breakdown in oversight and advisory responsibilities.
Quantified Impact
As of December 31, 2023, participants had over $9.08 billion invested in the plan. Approximate $999 million (11%) was allocated to allegedly deficient funds.
Bottom Line
Plaintiffs argue that imprudent fund selection and poor oversight have potentially cost participants hundreds of millions of dollars in lost value.
While we wait with bated breath on this latest case (and we may wait a year or two as the wheels of 401k justice turn ever so slowly), it is good to recall Wildman v American Century in 2019. A well-document process goes a long way towards explaining why certain actions were taken and how decisions were reached.
The Parting Glass
As a 401(k) advisor, my view is that this lawsuit underscores the imperative for rigorous fiduciary standards, particularly in:
Fund selection—prioritizing objectively strong-performing, low-cost, well-diversified options.
Ongoing monitoring—regular reviews and prompt removal of underperformers.
Documentation—maintaining clear records of decision-making processes and rationale.
For plan sponsors, being able to demonstrate diligent and defensible processes for selecting and overseeing investments is not just prudent—it is critical to fiduciary protection.
If you'd like, I can assist in conducting a review or drafting a defensible monitoring framework.