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DST Partially Beats 401(k) Plan Mismanagement Lawsuit

Sept. 19, 2019, 1:03 AM

DST Systems Inc., succeeded in trimming claims challenging excessive fees and imprudent investments in the company’s 401(k) plan.

Participants “failed to allege sufficient facts to suggest that a prudent fiduciary in like circumstances would have acted differently from DST,” Judge Andrew L. Carter Jr. of the U.S. District Court for the Southern District of New York held Sept. 18.

The lawsuit alleged DST breached its fiduciary duties under the Employee Retirement Income Security Act by concentrating an enormous and imprudent amount of the plan assets in Valeant stock. This investment allegedly caused the plan over $100 million in losses when ...

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