Bloomberg Faces $70M ERISA Class Action Over Alleged 401(k) Mismanagement

Event summary

  • Sanford Heisler Sharp McKnight filed a $70M+ ERISA class action against Bloomberg on January 29, 2026, alleging mismanagement of its 401(k) plan.
  • The lawsuit claims Bloomberg failed to remove two underperforming funds despite 16 years and 10 years of poor performance, respectively.
  • The case involves over 20,000 retirement plan participants and $5B+ in assets.
  • Bloomberg employees allegedly lost millions in retirement savings due to the retained funds.

The big picture

This lawsuit highlights growing legal scrutiny over 401(k) plan management, particularly concerning fiduciary duties and investment performance. It follows significant ERISA settlements in 2024 and 2025, including a $69M settlement with UnitedHealth Group and a $61M settlement with General Electric. The case underscores the financial stakes for large employers managing billions in employee retirement savings.

What we're watching

Governance Dynamics
How Bloomberg’s response to this lawsuit will impact its reputation as a fiduciary and its approach to retirement plan management.
Regulatory Headwinds
Whether this case will prompt increased scrutiny of 401(k) plan management practices across the financial services industry.
Execution Risk
The pace at which similar ERISA class actions emerge against other large employers following Sanford Heisler Sharp McKnight’s recent high-value settlements.