Putnam Inks $12.5 Million 401(k) Settlement After Justices Pass

Putnam Investments LLC will pay $12.5 million to settle a class action targeting the affiliated mutual funds in its 401(k) plan, plan participants told a federal judge in Boston three months after the U.S. Supreme Court declined to review the case.

The deal, announced April 17, is expected to benefit about 6,000 people who held retirement savings in Putnam’s plan. It requires Putnam to conduct periodic reviews of the Putnam-affiliated funds in its plan, and to ensure the plan offers a suite of low-cost collective investment trusts managed by unaffiliated third parties.

The deal comes about 18 months after the ...