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Transamerica forks over another $5 million in another 401(k) lawsuit

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If you’re a large plan sponsor, who also happens to offer your proprietary mutual funds in a 401(k) plan, you’re a mark for a lawsuit. Sometimes, twice. Transamerica has settled another lawsuit brought by participants who had alleged a breach of fiduciary duty in retaining proprietary funds in its own 401(k).

 

Transamerica will fork over $5 million in this lawsuit, five years after they forked over a $3.8 million settlement in another lawsuit raising similar allegations—although this suit distinguished its issues from this one.

 

This latest case also requires, during a three-year compliance period, that “Defendants continue to provide fiduciary training to the Trustees of the Plan and continue to retain an unaffiliated investment consultant to provide independent investment consulting services to the Trustees.”

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