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Transamerica Self-Dealing Lawsuit

Participants in the Transamerica’s retirement plan allege that the Plan has “imprudently” retained underperforming Transamerica proprietary funds when better performing investment options were available, costing participants millions of dollars in lost account earnings. Six Transamerica funds are concerned, all of which have been significantly underperforming for periods of at least one year, with three of the portfolios underperforming for the past five- and ten-year periods. In so doing, Transamerica allegedly neglected its duty to monitor investments in the Plan and take appropriate action in the event of underperformance. The case further states that Transamerica actually exacerbated participants’ losses through the offering of its Portfolio Xpress service, which automatically allocates participants retirement monies into proprietary products. Transamerica has stated it will “vigorously oppose the case.”

www.planadviser.com; January 2, 2019.