Attorney Charles Field, who represented the employees, said “the settlement provides genuine and meaningful relief” to the group. The lawsuit argued that Transamerica should have spotted the problem funds sooner and changed the options in its retirement plan because six of the funds employees could choose from underperformed comparable funds by a significant margin over a 10-year period.
The money will be divided up between roughly 24,000 people based on how long they invested in the funds and how much money they had invested. According to the lawsuit, employees who invested in Transamerica’s retirement plan lost between $15 million and $20 million because some funds performed worse than comparable ones that employees couldn’t choose in the plan. A spokesman for the company, which provides investment products and life insurance, said it maintains that the allegations are unfounded, but it agreed to settle the case to avoid the time and expense of litigation.
Transamerica remains committed to offering a competitive retirement plan to employees, the spokesman said. Transamerica is based in Baltimore, but it has major operations in Cedar Rapids, Iowa, where the lawsuit was filed, and in Denver.
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