Fidelity to Pay $28.5 Million to Settle Class 401(k) Challenge

Fidelity Investments will pay $28.5 million to settle a class action targeting the affiliated investment funds in its employees’ 401(k) plan, the plan participants told a federal judge in Boston on Thursday.

The deal resolves a lawsuit accusing Fidelity of filling its $17 billion 401(k) plan “exclusively” with Fidelity-affiliated investments that earned fees for the company. It comes three months after Judge William G. Young of the U.S. District Court for the District of Massachusetts ruled that Fidelity violated federal law in managing the plan. The parties were scheduled to try the case’s remaining issues over a Zoom videoconference later ...