You’re just weeks away from claiming your share of a huge $124 million 401(K) settlement – here’s everything you need to know
- 401(K) plan administrator will pay more than $124.6 million to resolve allegations that it mismanaged employee profit-sharing plans.
- Settlement resolves lawsuit brought by U.S. Department of Labor and private plaintiffs
- The lawsuit alleges that the plan overinvested in a single drug stock, causing participants to suffer losses on their retirement savings.
The deadline for eligible Americans to apply for $124 million worth of retirement plan settlements is fast approaching.
Trustees of a 401(K) plan sponsored by service provider DST Systems, which includes New York City-based investment management firm Luann Cunniff & Goldfarb, say they mismanaged employee profit-sharing plans. will pay more than $124.6 million to resolve the claims.
The settlement resolves a lawsuit brought by the U.S. Department of Labor and private plaintiffs that allege that the companies failed to diversify plan assets to minimize the risk of large losses.
The lawsuit alleges that the advisory firm overinvested in a single drug stock, Valeant Pharmaceuticals, and that stock grew to more than 45% of the plan’s assets. Ministry of Labor.
Prices subsequently fell dramatically, resulting in participants in the scheme incurring significant losses in their retirement savings.
The fiduciary of a 401(K) plan sponsored by service provider DST Systems will pay more than $124.6 million to resolve claims that it mismanaged employee profit-sharing plans.
Neither DST Systems, which was acquired by SS&C Technologies in 2018, nor Ruane, Cunniff & Goldfarb have admitted wrongdoing.
According to the Department of Labor, there are approximately 9,000 participants who will receive a portion of the settlement.
The exact amount each participant receives depends on their current status.
Current participants will have their shares deposited directly into their accounts, while former participants will receive a check in the mail.
You do not need to apply for either to receive compensation.
According to the Department of Labor, there are approximately 9,000 participants who will receive a portion of the settlement.
However, if you were a participant in the plan between March 14, 2010 and July 31, 2016 and would like to roll over your funds to another qualified retirement account. Submit a claim By October 12th.
The option to submit this form applies to those who have maintained a positive balance on their plan at any time during the period, but do not have an account with a positive balance as of August 3, 2023.
“This settlement restores the hard-earned retirement benefits of more than 9,000 participants in DST Systems’ retirement plans.
“The U.S. Department of Labor is determined to investigate potential violations of the Employee Retirement Income Security Act and seek redress,” Lisa M. Gomez, assistant secretary for employee benefits security, said in July.
