Transamerica Corporation controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
Transamerica settles 401(k) fiduciary-duty lawsuit for $5.4 million
Settlement
Transamerica settled a lawsuit alleging that it breached fiduciary duties by choosing and retaining underperforming proprietary investments in its 401(k) plan. The settlement provides for a $5.4 million payout and independent investment consulting and fiduciary training; Transamerica denied liability and wrongdoing.
Company response
Denial — Transamerica
Transamerica denies any liability or that it has done anything wrong, and said it is only agreeing to the settlement “solely to eliminate the burden and expense of protracted litigation.”
Source excerpt
Transamerica has settled a lawsuit in which it had been accused of breaching its fiduciary duties by using underperforming proprietary investments in its 401(k) retirement plan.
The settlement also stipulates that the plan will retain an unaffiliated investment consultant to provide independent investment consulting services to the trustees approximately every quarter.
The plaintiffs said the alleged breaches caused the plan and its participants to suffer “hundreds of millions of dollars of damages” but they settled for a $5.4 million payout.