JBS USA Sued Over 401(k) Fund Performance
The proposed class action alleges the firm's stable value fund underperformed compared to market benchmarks.
Updated on Sept. 23, 2026 in Public Companies
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JBS USA Food Co. Holdings faces a proposed class action lawsuit over its 401(k) stable value fund. The filing alleges the investment option failed to keep pace with industry benchmarks.
Why it matters
The lawsuit highlights the ongoing fiduciary risks companies face regarding the selection and oversight of retirement plan investment options. Operators must monitor fund performance to ensure plan assets are managed prudently to avoid liability for potential losses.
The lawsuit concerns a 401(k) stable value fund containing approximately $51 million in assets. Plaintiff Jerome Ziegler alleges the fund caused at least $4.7 million in losses over a four-year period.
The players
JBS USA Food Co. Holdings
A major food processing company that operates extensive meatpacking and production facilities.
Jerome Ziegler
The plaintiff who initiated the class action lawsuit against the company.
The details
The complaint alleges that JBS USA failed to adequately monitor and discipline the 401(k) stable value fund. By failing to ensure the fund remained competitive, the company allegedly allowed returns to lag behind similar market investment options for years. This failure forms the basis of the claim that the company breached its fiduciary duties to plan participants.
Timeline
2020-2024: The period in which the alleged $4.7 million in losses occurred.
Market Landscape
This lawsuit follows a documented industry trend of ERISA-related challenges regarding employer oversight of retirement plan investment performance. It mirrors a series of recent legal actions where employees have held companies accountable for the selection of specific plan funds.
Business owners should review their retirement plan investment committee processes to ensure regular monitoring of fund performance against benchmarks. Consult with plan counsel to document oversight activities, as demonstrating consistent evaluation is critical to defending against potential breach-of-fiduciary-duty claims.
The takeaway
Retirement plan administration requires active management to ensure investment options remain competitive and prudent for employees. Operators should work with their plan administrators to audit fund performance annually and ensure those assessments are documented in committee meeting minutes.
Further reading
For more on how recent litigation impacts corporate governance, review our coverage of Public Companies.
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