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Transamerica 401(k) Challenge Now Class Action Covering 17,000

March 26, 2020, 2:14 PM

Transamerica Corp. is now facing a 17,000-person class action in a lawsuit challenging the affiliated investment funds in the company’s 401(k) plan, after an order issued in the Northern District of Iowa.

The order, issued Wednesday by Judge C.J. Williams, follows Transamerica’s decision not to fight the investors’ request for class status.

The mutual fund and retirement plan provider is accused of offering workers six 401(k) investment options managed by a Transamerica affiliate that consistently underperformed their benchmarks. The company is also accused of encouraging workers to sign up for its Portfolio Xpress tool, which the lawsuit says “automatically allocated”...

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