A federal choose has accepted a $5.4 million settlement between Transamerica and its present and former staff who accused the corporate of providing a number of poor performing investments in its worker retirement plan.
The cash can be divided up between roughly 24,000 individuals based mostly on how lengthy they invested within the funds and the way a lot cash that they had invested.
In keeping with the lawsuit, staff who invested in Transamerica’s retirement plan misplaced between $15 million and $20 million as a result of sure funds carried out worse than comparable ones that staff could not select within the plan.
Legal professional Charles Discipline, who represented the staff, stated “the settlement provides genuine and meaningful relief” to the group.
The corporate that gives funding merchandise and life insurance coverage did not instantly reply Tuesday to questions concerning the settlement. Transamerica is predicated in Baltimore, nevertheless it has main operations in Cedar Rapids, Iowa, the place the lawsuit was filed and in Denver.
The lawsuit argued that Transamerica ought to have noticed the issue funds sooner and adjusted the choices in its retirement plan as a result of six of the funds staff might select from underperformed comparable funds by a major margin over a 10-year interval.