Takeda Inks $22 Million Class Settlement in 401(k) Fund Suit (1)

Takeda Pharmaceuticals USA Inc. agreed to pay $22 million to resolve a proposed class action challenging the Northern Trust target date funds in its employees’ 401(k) plan, according to a Boston federal court filing.

The settlement, announced Monday and expected to benefit about 8,000 people covered by Takeda’s $1.8 billion 401(k) plan, requires the company to make several improvements to its plan management process. Takeda pledged to use a competitive bidding process to look for a new plan recordkeeper and to schedule annual trainings for plan fiduciaries, according to the filing.

The lawsuit challenges a suite of target date funds ...