Transamerica settles dispute over retirement plan for $5.4M
CEDAR RAPIDS, Iowa (AP) - Transamerica has agreed to a $5.4 million settlement with roughly 17,000 current and former employees in a lawsuit that accused the investment company of offering several poor performing options in its employee retirement plan.
The federal lawsuit filed in Iowa said the underperforming funds in Transamerica’s retirement plan cost employees between $15 million and $20 million because they performed worse than comparable funds that employees couldn’t choose as part of the plan.
The company that provides life insurance and investment products didn’t immediately respond Thursday to questions about the settlement.
Transamerica is based in Baltimore, but it has major operations in Cedar Rapids, Iowa, and Denver.
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