A former International Bancshares Corp. employee filed a proposed class action saying the Texas-based bank mismanages its 401(k) plan by investing most of the plan’s assets in cash and short-term bonds that produce paltry returns.
The bank responded to a market downturn by moving retirement plan assets away from stocks and toward cash and other fixed income investments that are inappropriate vehicles for long-term retirement investors, the worker said in a complaint filed Wednesday in the US District Court for the Southern District of Texas.
Plaintiff Paul Parrott, a former plan participant who left the bank in 2021, says about …