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Transamerica Inks $5.4 Million Deal in 401(k) Lawsuit (Correct)

June 23, 2021, 6:11 PMUpdated: July 2, 2021, 6:58 PM

Transamerica Corp. will pay $5.4 million to settle a class action claiming it breached its fiduciary duty to employees by putting its own underperforming funds in their 401(k) plan, the plan participants told an Iowa federal judge Wednesday.

The deal, which represents about 36% of the plan participants’ potential damages, is expected to benefit 24,500 people with retirement money invested in Transamerica’s plan. It also requires the company to continue providing fiduciary training to the plan’s trustees and to continue retaining an unaffiliated investment consultant for the plan, according to settlement papers filed in the U.S. District Court for the ...