Principal Wins Suit Over Guaranteed Investments in 401(k) Plans

Principal Life Insurance Co. prevailed in a lawsuit accusing it of reaping excessive profits from the guaranteed investment products it sells to 401(k) plan investors.

Principal joins other insurance companies, including Great-West Life & Annuity Insurance Co. and United of Omaha Life Insurance Co., that have successfully defended their guaranteed investment products from proposed class action challenges. Similar lawsuits against Metropolitan Life Insurance Co., New York Life Insurance Co., and Prudential Retirement Insurance & Annuity Co. have been voluntarily dropped in recent years.

Principal didn’t act as an Employee Retirement Income Security Act fiduciary with respect to its ...