Arthur J. Gallagher 401(k) Plan Spurs Stable Value Fund Lawsuit

An Arthur J. Gallagher & Co. unit was hit with a proposed class action saying its employee 401(k) plan is plagued by a faulty stable value fund that produces “underwhelming” returns.

The lawsuit, filed Oct. 24 in the US District Court for the Northern District of Illinois, takes aim at a guaranteed investment fund that held more than $500 million worth of the Gallagher plan’s assets. This fund failed to produce competitive returns while subjecting workers to increased credit risk, illiquidity concerns, and a lack of transparency as to fees, according to the lawsuit by three former Gallagher employees. ...