Invesco to Pay $3.5 Million to End Affiliated 401(k) Fund Suit

Invesco Holding Co. will pay nearly $3.5 million to settle a class action challenging the affiliated mutual funds in its 401(k) plan, according to a settlement motion filed in the Northern District of Georgia.

The deal, announced Monday, resolves allegations that Invesco loaded its $890 million 401(k) plan with expensive funds that performed poorly and paid fees to the company. Invesco was accused of using its 401(k) plan as a “captive market and testing ground” for its investment products.

The deal also requires Invesco to modify the plan’s self-directed investment account to allow participants to purchase shares of unaffiliated exchange-traded ...