DST Systems Inc. and Ruane, Cunniff & Goldfarb Inc., will pay more than $124.6 million to settle a US Labor Department lawsuit and class-action complaint alleging failure to properly manage the profit-sharing portion of the company’s 401(k) retirement plan.
The Labor Department, which announced the tentative settlement agreement Monday, argued before the US District Court for the Southern District of New York that DST and its retirement plan investment manager pursued a “deliberate strategy of non-diversification.”
By concentrating plan assets in just a handful of securities, the information processing software and service provider company failed to minimize the ...
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