DST, Ruane Cunniff Sued Again Over Valeant Stock in 401(k) Plan

Sept. 5, 2017, 1:22 PM

Investment firm Ruane Cunniff & Goldfarb Inc. and DST Systems Inc. face a third lawsuit over the alleged imprudent investment of DST’s 401(k) plan assets in Valeant Pharmaceuticals stock (Ferguson v. Ruane Cunniff & Goldfarb Inc., S.D.N.Y., No. 1:17-cv-06685, complaint filed 9/1/17).

Ruane, which manages the Sequoia Fund Inc., with the consent of DST and its executives, allegedly “gambled” over one-third of the plan’s assets in an “opaque, high-cost, high-risk, long term investment strategy” that resulted in losses of more than $100 million to the plan, according to a lawsuit filed Sept. 1 in federal court in New ...

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