Judge Neals also rejected the claim that the committee’s meeting minutes failed to reflect discussions about the funds’ underperformance. Citing a similar case, Falberg v. Goldman Sachs Group Inc., the judge noted that meeting minutes are not required to be a complete transcript of every discussion.
Fund Performance Considered Holistically
The former employees contended that Quest should have removed the Freedom Funds by 2015 and the Invesco Fund by 2016 due to subpar performance. The court, however, ruled that investment performance is just one of several factors that fiduciaries must consider. Judge Neals noted that the Freedom Funds sometimes outperformed their peers, and the Invesco Fund met certain benchmarks. Additionally, the court found sufficient evidence that Quest had thoroughly reviewed both funds and took action when warranted.
Quest Diagnostics Escapes 401(k) Mismanagement Suit : Legal Representation
The former workers were represented by attorneys from Miller Shah LLP, while Quest Diagnostics was represented by Morgan Lewis & Bockius LLP. Both parties have yet to respond to requests for comment.
