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John Hancock’s Affiliated 401(k) Funds Spur New Lawsuit (1)

Feb. 28, 2020, 4:29 PMUpdated: March 2, 2020, 4:56 PM

A new lawsuit accuses John Hancock Life Insurance Co. of filling its 401(k) plan entirely with expensive and poorly performing affiliated investment options, according to a proposed class action complaint filed in the District of Massachusetts.

Plan participant Jennifer Baker on Thursday accused the financial and insurance company of applying “an imprudent and inappropriate preference for John Hancock products,” despite their “poor performance, high costs, and lack of traction among fiduciaries of similarly-sized plans.” According to Baker, the company’s 401(k) plan “consisted entirely of John Hancock proprietary investment products,” including some funds that no other large 401(k) plans included in ...