Prudential Beats 401(k) Fund Class Action With Robust Processes

Prudential Insurance Co. of America used an appropriate process to review and monitor its 401(k) plan’s investment lineup, a federal judge said in an opinion tossing out a 45,000-person class action against the insurance company.

Judge Jamel K. Semper awarded Prudential summary judgment in the Employee Retirement Income Security Act case, saying the workers failed to raise a factual dispute as to whether Prudential’s process for making 401(k) investment decisions was sufficient.

Prudential’s investment committee met quarterly to review the plan’s funds, hired an “extremely thorough” outside consultant, reviewed briefing books on plan investments before meetings, and provided fiduciary training ...