MassMutual Settles 401(k) Fee Lawsuit for $31M

Massachusetts Mutual Life Insurance Co. will pay nearly $31 million to settle a lawsuit claiming that it mismanaged its 401(k) plan, according to recently filed court documents (Gordan v. Mass. Mutual Life Ins. Co., D. Mass., No. 3:13-cv-30184, motion for preliminary settlement approval filed 6/15/16).

The lawsuit, filed in 2013 by a proposed class of more than 14,000 plan participants, alleged that MassMutual and its top executives “larded” the company’s retirement plan with “excessive fees” and “unreasonably priced, proprietary investment options” in violation of their fiduciary duties under the Employee Retirement Income ...