Jackson National to settle 401(k) self-dealing lawsuit for $4.5 million

Insurer allegedly filled its 401(k) plan with high-cost in-house investments

Nov 5, 2018 @ 11:47 am

By Greg Iacurci

Jackson National Life Insurance Co. has reached a $4.5 million settlement in a self-dealing lawsuit that alleged the company profited at the expense of its employees by adding high-cost proprietary investment funds to its 401(k) plan.

The settlement amount is just shy of half the plaintiff's total estimated damages in the class-action lawsuit, Becky A. Matthews Pease v. Jackson National Life Insurance Co., according to a court filing on Nov. 1. The parties still need court approval for the settlement.

The lawsuit, originally filed in March 2017 in Michigan district court, is one of several recent self-dealing cases involving financial services companies and their retirement plans. It also comes amid a broader wave of litigation targeting retirement-plan sponsors and their service providers, a trend that began about 12 years ago but has gained momentum in the past few years.

The self-dealing lawsuits have shown mixed results to date. Some courts have found in favor of defendants, including litigation involving Capital Group, Wells Fargo & Co. and Putnam Investments. Several firms have settled, including Deutsche Bank, Allianz, Citigroup Inc., TIAA and New York Life Insurance Co.


What do you think?

View comments

Recommended next


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print