Benefits & Executive Compensation News

Transamerica Can’t Undo Ruling Allowing 401(k) Suit to Advance

Nov. 8, 2019, 4:34 PM

Transamerica Corp. failed to convince a federal judge in Iowa to rethink a decision green-lighting a proposed class action targeting the affiliated investment funds in the company’s 401(k) plan.

Judge C.J. Williams of the U.S. District Court for the Northern District of Iowa Nov. 7 reaffirmed his August decision declining to dismiss the Employee Retirement Income Security Act lawsuit. The August decision didn’t misconstrue Transamerica’s arguments, and it didn’t present a legal question worthy of being immediately appealed, Williams said.

Transamerica is accused of offering its workers six 401(k) investment options, managed by a Transamerica affiliate, that consistently underperformed their...

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