Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.
Compliance January 12, 2021
DST Systems, Investment Manager Settle Lawsuit Over Risky Retirement Plan Investment
The lawsuit said the DST Systems Inc. profit sharing and 401(k) plans were invested too much in Valeant Pharmaceuticals.
Reported by Rebecca Moore
Settlements to resolve a lawsuit alleging mismanagement of investments in the DST Systems Inc. profit sharing and 401(k) plans have been presented to a federal court.
The plans included investments in the Sequoia Fund, distributed and advised by Ruane, Cunniff & Goldfarb & Co. The lawsuit alleged that the defendants in the lawsuit failed to diversify the Sequoia Fund and, rather than minimize the risk of large losses, allowed the fund to hold large amounts of Valeant Pharmaceuticals stock.
A settlement amount of $27 million to be paid by DST Systems was reached. A $21.5 million settlement was reached between the plaintiffs and Ruane, Cunniff & Goldfarb & Co., and a $30.5 million settlement was reached with Robert D. Goldfarb, president and CEO of the firm.
Similar allegations were filed in lawsuits against the Disney Corp. and FMC Corp. Disney prevailed in the lawsuit that was filed against it.
« Latest Relief Package Extends Provisions for Small Business Employers