Investor Alert: Lawsuit Filed Against State Farm Investment Management Corporation for Charging Excessive Fees for Target Date Retirement Funds

Aug 10, 2015, 10:08 ET from Berger & Montague, P.C.

PHILADELPHIA, Aug. 10, 2015 /PRNewswire/ -- Plaintiffs Amy L. Ingenhutt and Teresa L. Odell filed a lawsuit in the US District Court for the Central District of Illinois against State Farm Investment Management Corporation ("SFIMC") for charging excessive management fees in the mutual funds known as the LifePath Funds. The LifePath Funds are target date retirement funds typically sold through State Farm Individual Retirement Accounts (IRAs) and include the State Farm LifePath Retirement Fund (MUTF:NILAX), the State Farm LifePath 2020 Fund (MUTF:NLWAX), the State Farm LifePath 2030 Fund (MUTF:NLHAX), the State Farm LifePath 2040 Fund (MUTF:NLOAX), and the State Farm LifePath 2050 Fund (MUTF:NLPAX).

Suing on behalf of investors, Plaintiffs charge that SFIMC, as investment advisor, has violated Section 36(b) of the Investment Company Act of 1940. The LifePath Funds, issued by the State Farm Mutual Fund Trust, do not invest directly in securities. Instead, each LifePath Fund invests in a corresponding separate portfolio called a "Master Portfolio". The Master Portfolios, in turn, are part of a fund known as the Master Investment Portfolio.  SFIMC does not manage the Master Investment Portfolio or the Master Portfolios but instead relies on another investment management company, BlackRock Fund Advisors, to do so.

According to the complaint, State Farm Investment Management Corporation "does not provide any day-to-day investment services to the LifePath Funds. Nor does it provide any investment guidance or policy direction in connection with daily portfolio management. Nonetheless, it receives approximately half of the net management fees collected from the LifePath funds." In 2014, State Farm Investment Management Corporation collected approximately $17.5 million in management fees.

Plaintiffs are represented by Berger & Montague, P.C., Schneider Wallace Cottrell Konecky Wotkyns LLP, and Hudson Mallaney Shindler & Anderson, P.C. The law firms described the LifePath management fees as "a waste of the investors' money and a breach of [SFIMC's] fiduciary duty."

If you have questions about the lawsuit or how it may affect you, please visit


Todd S. Collins
1622 Locust Street
Philadelphia, PA 19103-6365
Telephone: (215) 875-3040

Todd M. Schneider
180 Montgomery St., Suite 2000
San Francisco, California 94104
Telephone: (415) 421-7100

J. Barton Goplerud IA Bar No. AT0002983
5015 Grand Ridge Drive, Suite 100
West Des Moines, Iowa 50265
Telephone: (515) 223-4567

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SOURCE Berger & Montague, P.C.