Northern Trust to Pay $6.9 Million Over In-House 401(k) Funds

Northern Trust Co. will pay $6.9 million to settle a lawsuit by employees challenging the in-house target date funds in the financial services company’s $2.7 billion 401(k) plan.

About 14,000 people covered by Northern Trust’s retirement plan who invested in the company’s target date funds since June 2015 are expected to benefit under the deal. The settlement amount represents between 12% and 38% of the participants’ estimated damages in the case, they said in a motion filed Monday in the US District Court for the Northern District of Illinois.

The proposed class action says Northern Trust enriched itself at the ...