Overview
Cohen Milstein and ClientEarth represent Cushman & Wakefield 401(k) plan participants and beneficiaries in a first-of-its kind ERISA class-action alleging that the company failed to properly protect workers’ 401(k) savings from material climate-related financial risks, while explicitly acknowledging climate change as a financial risk to its own business operations and client assets.
Case Background
Cushman & Wakefield, an American global commercial real estate and property management services firm, is also a highly sophisticated fiduciary of one of the largest retirement plans in the United States.
The complaint alleges that Cushman & Wakefield failed to evaluate, monitor and remove the Westwood Quality SmallCap Fund, which exposes retirement savers to dangerous levels of climate-related financial risk while at the same time underperforming and charging unreasonably high fees.
Specifically, the complaint alleges that Westwood Quality SmallCap Fund expressly disclaims climate risk analysis, while its returns lagged benchmarks by 17% in 2025 and while charging significantly higher fees than comparable funds. By retaining the fund, Cushman & Wakefield allegedly exposed 401(k) participants to inordinate levels of climate-related risk and persistent underperformance compared to available benchmarks.
The complaint also highlights an alleged discrepancy between Cushman & Wakefield’s corporate risk management and its stewardship of employee capital. While the company has explicitly acknowledged that climate change is a financial risk that poses a material threat to its own business operations, has moved to insulate its balance sheet accordingly, and offers expertise to clients on how to manage the risk, the lawsuit claims the company failed to apply similar risk analysis to its 401(k) plan.
The lawsuit also alleges the company failed to guard against conflicts of interest between participants and the financial services firm Fidelity, which both advised and administered the plan.
Plaintiff therefore bring this action to require Cushman & Wakefield to restore the losses caused by the mismanagement of their 401(k) plan and to obtain injunctive relief to prevent further mismanagement.