Sanford Heisler Sharp McKnight filed a $28 million complaint in the U.S. District Court for the Eastern District of Virginia against Parsons Financial Corporation and its fiduciaries, alleging violations of the Employee Retirement Income Security Act (ERISA). The lawsuit claims Parsons imprudently retained a poorly performing fund in its 401(k) retirement savings plan for over a decade, resulting in substantial financial losses for plan participants.

The complaint centers on the Nuveen Dividend Growth Fund, which was added to the Parsons retirement savings plan in 2012. According to the filing, the fund consistently underperformed its stated benchmark and experienced significant cash outflows. The plaintiffs argue that the decision to retain the fund indicates a lack of the proper care, skill, and diligence required of plan fiduciaries.

Financial data presented in the complaint highlights the extent of the underperformance. From January 1, 2012, through June 30, 2020, the Nuveen Dividend Growth Fund reportedly underperformed the S&P 500 by over 46%, returning 147.44% compared to the benchmark's 194.20%. This period alone cost the plan approximately $18,200,000 in retirement savings.

The fund's performance allegedly deteriorated further in the subsequent years. From July 1, 2020, to December 31, 2025, the complaint states the Nuveen Dividend Growth Fund lagged behind the S&P 500 by more than 37 percentage points. Consequently, the Parsons plan is alleged to have lost over $28 million in earnings during this timeframe.

Charles Field, Co-Chair of Sanford Heisler Sharp McKnight’s Financial Mismanagement and ERISA Litigation Practice Group and counsel for the plaintiff, criticized the fiduciaries' inaction. "Employees expect their retirement plans to set them up for a successful retirement. Parsons failed the plan by failing to remove the disastrous Nuveen Dividend Growth Fund," Field stated. He added that it is disappointing to see fiduciaries fail to act when faced with objective financial performance data.

Kristi Stahnke McGregor, Of Counsel at Sanford Heisler Sharp McKnight, emphasized the broader impact of the alleged mismanagement. "The harm to the Parsons retirement savings plan is not just about the sheer financial losses, but it’s also about eroding the trust of workers," McGregor said. The lawsuit seeks to recover losses for the plan and its participants.

Raft and Parsons Corporation (NYSE: PSN) announced on June 30, 2026, that Parsons has joined Raft's Partner Program to accelerate the delivery of data, artificial intelligence, and mission-critical capabilities to military operators across the Indo-Pacific. The collaboration aims to help the joint force increase lethality, accelerate decision-making, and maintain a decisive advantage in contested environments. This strategic partnership underscores the growing importance of advanced technology in addressing the operational demands of the Indo-Pacific theater.

The Indo-Pacific remains the world's most strategically significant theater, where military forces face unprecedented demands to operate across vast distances and under degraded conditions. Meeting these challenges requires advanced technology and partners willing to work side-by-side with operators, move at operational speed, and continuously adapt to mission needs. Through its participation in Raft's Partner Program, Parsons will collaborate to support modernization efforts, advance data and AI adoption, and deliver capabilities that improve decision advantage, operational resilience, and force effectiveness.

"Our Partner Program is built with intention, and we're proud to welcome Parsons to a growing ecosystem of strategic partners who share our vision and drive long-term growth," said Meghan Grumbach, Vice President of Marketing and Partnerships at Raft.

Parsons' president of Defense and Intelligence, Mike Kushin, emphasized the practical benefits of the collaboration. "Our customers need capabilities that work on day one and evolve at the pace of the mission," Kushin said. "Together with Raft, we are delivering integrated data and AI solutions that put operators first, accelerating insight, improving mission outcomes, and ensuring the joint force can outpace emerging threats across the Indo-Pacific."

Strategic Collaboration and Recent Initiatives

This engagement reflects a broader shift in defense modernization toward continuous collaboration between operators and industry. A recent example of this collaboration was the Pacific Operator Training, where Raft and Parsons brought together military leaders and operators from across the joint force. The training focused on educating participants on modern data architectures, artificial intelligence, and mission technologies currently supporting operational missions throughout the Pacific.

By combining their expertise and maintaining a relentless focus on mission outcomes, Raft and Parsons aim to lead modernization efforts that strengthen operational readiness across the Indo-Pacific. The partnership leverages Raft's capabilities in connecting data, systems, sensors, and operators from the tactical edge to the enterprise, alongside Parsons' expertise in cyber and electronic warfare, space and missile defense, and critical infrastructure protection.