Liberty Mutual Settles 401(k) Class Action for $13.4 Million

Liberty Mutual Group Inc. agreed to pay $13.4 million to resolve a 50,000-person class action over its 401(k) plan management, a move that averted a rare jury trial.

The deal, which represents between 25% and 46% of the total damages sought by plaintiffs, also requires Liberty to look for new plan service providers and to instruct its 401(k) recordkeeper not to market unrelated products to plan participants, according to court filings submitted Tuesday in the US District Court for the District of Massachusetts. The parties first announced they’d struck a deal in January, less than one month before the case ...