Page 419 - DCAC Feb 2026 Files

Imprudent Investments: Investment Performance

Rajappan Rajkumar v. Bloomberg L.P.

Complaint alleges the Bloomberg and its plan committees failed to remove two actively managed stock funds

despite long-term underperformance compared with their benchmarks and the availability of lower-cost

alternatives, leaving roughly 20,000 current and former employees exposed to inferior returns.

• Alleges fiduciaries continued to offer two funds, even as their results lagged major market indexes such as the

Russell 1000 Growth Index and the S&P 500 over one-, three-, five- and 10-year periods.

• Complaint claims Bloomberg’s fiduciaries ignored “clear warning signals” that the funds were no longer prudent

options and failed to replace them with readily available alternatives from firms such as Vanguard, Fidelity or

BlackRock that offered similar market exposure at lower cost.

• The $70 million lawsuit was filed in January 2025.

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