Nokia Corporation is under fire as two former employees filed a proposed $100 million class action lawsuit in New Jersey federal court, alleging that the company grossly mismanaged its 401(k) retirement plan—a move they claim shortchanged employees out of substantial financial gains.
Filed by James Sims and Antonio Smith, the suit accuses Nokia of failing to uphold its fiduciary duty under the Employee Retirement Income Security Act of 1974 (ERISA). Specifically, the complaint targets the company’s continued use of two chronically underperforming equity funds, which plaintiffs argue caused the retirement plan to lose out on more than $100 million in potential returns.
“The defendants have failed to prudently invest, monitor, and adjust the plan’s holdings,” said the plaintiffs, summarizing their grievance against the telecom giant.
High-Stakes Allegations Against Nokia and Its Investment Committees
The lawsuit names Nokia of America Corp. and four key corporate entities tasked with managing the retirement funds:
