AutoZone Defeats 401(k) Mismanagement Allegations After Trial

AutoZone Inc. prudently managed its employees’ 401(k) by regularly monitoring investments, making appropriate changes, and relying on expert advice, a federal judge ruled after a seven-day trial.

Workers said the company breached its fiduciary duties under the Employee Retirement Income Security Act by failing to promptly swap the plan’s stable value fund for one with a higher crediting rate. Judge Mark S. Norris disagreed, saying the company appropriately monitored the fund’s performance, surveyed the market for other alternatives, and transitioned to a different option after considering outside advice.

Norris also rejected claims that AutoZone wrongly allowed Prudential Financial Inc.'s ...