Benefits & Executive Compensation News

Allianz to Pay $12M to End Suit Over 401(k) Fees, Funds

Dec. 27, 2017, 1:41 PM

Allianz Asset Management of America will pay $12 million to end a class action claiming it filled its 401(k) plan exclusively with affiliated investments that earned money for the company.

The deal will end a two-year legal battle over the fees paid by Allianz workers when they invest their 401(k) money. Allianz is accused of offering only high-fee, affiliated investment funds in its workers’ 401(k) plan. This allowed Allianz to line its pockets at the expense of employees’ retirement savings, the lawsuit says.

The deal was announced in court papers filed Dec. 26 and must be approved by a federal...

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