DST 401(k) Investors’ $125 Million Class Deal Clears Hurdle

Participants in DST Systems Inc.'s 401(k) plan won initial court approval for a $125 million class settlement resolving litigation targeting the plan’s overinvestment in the stock of a troubled pharmaceutical company.

The settlement covers 9,000 people and is slated to resolve multiple federal lawsuits, including one filed in 2019 by the Department of Labor, and hundreds of individual arbitration actions. It requires DST; investment firm Ruane, Cunniff & Goldfarb Inc.; and former Ruane Chief Executive Officer Robert D. Goldfarb to pay $124,625,000 into a settlement fund, which will also go toward paying more than $9 million in civil penalties assessed ...