John Hancock Settles Affiliated 401(k) Fund Suit for $14 Million

John Hancock Life Insurance Co. will pay $14 million to settle a 9,800-person class action challenging the affiliated mutual funds in the 401(k) plan covering its employees, federal court papers filed in Boston show.

The deal requires John Hancock to make several improvements to the retirement plan going forward, including hiring an independent investment consultant to monitor plan investments, developing an investment policy statement for the plan, and hiring an independent consultant to negotiate the plan’s record-keeping services. The settlement payment represents 20% of plaintiffs’ total estimated damages, according to a motion filed Tuesday in the U.S. District Court for ...