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Waddell & Reed Self-Dealing Settlement

In this class action lawsuit, filed in June 2017, 4,487 plaintiffs (current and former participants) claimed that Waddell & Reed Financial Inc. 401(k) and Thrift Plan fiduciaries violated fiduciary duties by offering proprietary investments without the consideration of better performing, less expensive non-proprietary options. Despite Waddell & Reed’s admission of no wrongdoing, a $4.875 million settlement has been reached upon mediator intervention. Waddell & Reed must also hire an independent investment adviser to work with the Plan administrative committee for three years to assist with plan decisions.

www.plansponsor.com; November 26, 2018.