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Stadion, United of Omaha Accused of 401(k) Self-Dealing

Jan. 28, 2019, 7:19 PM

Stadion Money Management and United of Omaha Life Insurance Co. are accused of draining money from small 401(k) plans by steering retirement savings toward expensive, affiliated funds.

The proposed class action, filed Jan. 25 by an investor whose 401(k) account was managed by the defendants, alleges a scheme in which United of Omaha promoted Stadion’s investment management services to employers with small 401(k) plans. Stadion in turn funneled retirement dollars toward funds that paid fees to the companies, despite the existence of cheaper, better funds, the lawsuit claims.

Stadion is an asset manager that provides managed account services for small...

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