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McKinsey to Pay $39.5 Million to End Affiliated 401(k) Fund Suit

Aug. 11, 2020, 1:52 PM

McKinsey & Co. will pay $39.5 million to resolve a proposed class action claiming it improperly profited off its employees’ 401(k) plans by filling them with expensive investment options that paid fees to a McKinsey subsidiary, plan participants told a federal judge in Manhattan.

The Monday settlement, which is expected to benefit about 33,000 people who had retirement money invested in McKinsey’s retirement plans, resolves a proposed class action filed under the Employee Retirement Income Security Act. The deal will go to Judge Gregory H. Woods of the U.S. District Court for the Southern District of New York for approval. ...