Labor Regulator Balks at DST Workers’ $80 Million in Settlements

A trio of class settlements providing nearly $80 million to participants in the DST Systems Inc. 401(k) plan should be rejected or revised because they include invalid provisions attempting to block the Department of Labor from prosecuting an active case against DST and investment firm Ruane, Cunniff & Goldfarb, the department told a Manhattan federal judge.

The department “strongly requests” that Judge Andrew L. Carter Jr. reject provisions in the three settlement agreements that would interfere with its attempt to hold DST, Ruane, and Ruane’s former chief executive officer liable for steep investment losses in the DST plan. These provisions ...