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Transamerica Self-Dealing Lawsuit

In the second lawsuit of this nature (the first settled in 2015), participants in the Transamerica 401(k) Plan claim that Plan fiduciaries selected and continued to offer substandard performing investment options managed by an affiliate in lieu of better performing, readily-available non-affiliated investment options. In so doing, Transamerica breached its fiduciary responsibility to the Plan, neglecting its duty to prudently select and monitor the Plan’s investment options, and remove consistently underperforming options, costing the Plan participants millions of dollars due to poor performance. Six Transamerica funds in particular are mentioned in the complaint.

www.planadviser.com; January 2, 2019.