Massachusetts Financial Settles 401(k) Fee Class Action

Massachusetts Financial Services Co. agreed to settle a class action by employees challenging the affiliated mutual funds in their 401(k) plans.

The lawsuit accuses MFS of mismanaging the plans, which together hold more than $500 million, by offering high-cost funds affiliated with the company and by failing to investigate lower-fee options.

More than 99 percent of the plans’ assets were held in MFS-affiliated funds that earned money for the company and reduced workers’ retirement savings by tens of millions of dollars, the lawsuit claims.

Details of the settlement will be made public in mid-June, the parties said in a May ...