State Street Settles In-House 401(k) Fund Suit for $4.3 Million

State Street Corp. signed a $4.3 million class settlement in a lawsuit saying it fills its employees’ 401(k) plan with pricey in-house funds that benefit the company at the expense of workers’ retirement savings.

The settlement amount is about 20% of the plan participants’ estimated damages and represents a “significant” recovery that’s similar to deals struck in other cases challenging retirement plan funds, according to the settlement motion. It’s expected to benefit more than 22,000 people covered by the State Street retirement plan since May 2015.

The deal, filed Monday in the US District Court for the District of ...