Bessemer Trust Cleared for $5 Million In-House 401(k) Fund Deal

Bessemer Trust Co. received final court approval for a $5 million class settlement with workers who say the financial services company filled their 401(k) plan with expensive and poorly performing mutual funds managed by a subsidiary.

The deal is expected to benefit about 2,600 people covered by the Bessemer Trust 401(k) plan since January 2016. It represents between 11% and 26% of plan participants’ total estimated losses tied to the plan’s alleged mismanagement, according to the settlement motion.

Judge Mary Kay Vyskocil of the US District Court for the Southern District of New York signed the final approval order ...