A class-action lawsuit alleges that teachers and others covered by West Virginia's only state-run 401(k)-style retirement program are the victims of fraud.

The lawsuit targets an investment option known as a VALIC annuity that was offered to enrollees in the Teachers' Defined Contribution plan.

It alleges enrollees were duped into joining the plan and selecting the VALIC annuity through inaccurate and fraudulent representations.

The annuity is also blamed for the poor returns suffered by many TDC investment accounts. Thousands of plan enrollees are trying to transfer into another state-run pension program as a result.

The lawsuit names AIG Retirement, its VALIC subsidiary and others allegedly involved in selling the annuity. It was filed Monday in Marshall County Circuit Court.