Allianz, MassMutual Suits Are Warning for In-House 401(k) Funds

It was déjà vu at Allianz and MassMutual in recent months, when both companies were hit with lawsuits over the affiliated investment funds in their employees’ 401(k) plans.

The allegations—that the companies lined their pockets at the expense of workers by forcing them into pricey, in-house funds—were familiar. Allianz Asset Management of America was accused of similar wrongdoing in 2015, ultimately signing a $12 million class settlement. Massachusetts Mutual Life Insurance Co. settled litigation over its affiliated 401(k) funds for $30.9 million in 2016.

The new lawsuits serve as a warning for the dozens of other financial companies that ...