As a plan sponsor, you’re always going to run into another plan provider that is interested in picking you as a client. Plan providers can only grow their business by adding new clients, so it’s a part of the game.
As part of any client solicitation, it’s not unexpected that a soliciting plan provider will run down an incumbent provider especially if they’re getting sued. A lawsuit isn’t evidence of any wrongdoing and it’s pretty hard to find any large plan provider (especially plan custodians) who hasn’t been sued. Lawsuits don’t mean much as settlements because a lot of class action lawsuits get tossed before there is any settlement or verdict.
That doesn’t mean that you should ignore any news about litigation against plan provider especially when it’s something you can’t ignore like a lawsuit over stolen plan assets.
You should always be aware of what is going on with your plan providers, but the filing doesn’t necessarily mean that something is wrong.