New York Life Must Defend Stable Value Fund in Workers’ 401(k)

New York Life Insurance Co. must face claims challenging its decision to use a proprietary, low-risk stable value fund as the default investment option in two retirement plans covering its workforce.

A Manhattan federal judge on Tuesday denied the insurance company’s partial motion to dismiss these claims. The judge didn’t give a written explanation for the decision, telling the parties that he’d explain his thinking during an April 3 pretrial conference.

The proposed class action takes aim at a pair of New York Life retirement plans that together hold more than $4.3 billion and cover nearly 30,000 people. Former employees ...