FM Global Agrees to Pay $750,000 to Exit 401(k) Fee Challenge

FM Global will pay $750,000 to settle a proposed class action by workers who accused the Rhode Island-based insurance company of mismanaging their $1.8 million 401(k) plan through high fees and poorly performing funds.

The agreement is slated to benefit about 6,000 people covered by FM Global’s plan since October 2017. It represents 37.5% of the amount workers demanded in connection with their claim for excessive fees, according to an Aug. 29 motion asking that the deal be approved.

• The lawsuit says FM—formally known as Factory Mutual Insurance Co.—mismanaged its retirement plan in violation of the Employee Retirement Income Security ...