New York Life Settles Self-Dealing Allegations
New York Life Insurance Company has settled a 401(K) lawsuit accusing the company of self-dealing in its 401(k) plans. The case involved a MainStay-branded S&P 500 index mutual fund that plaintiffs believe was retained out of the insurer’s self-interest even as participants saved less money than they would have if they had been able to invest in non-proprietary funds that were less expensive.
The lawsuit alleged that class members had paid about $3.9M in excessive fees. The plaintiffs accused the mutual life insurer of committing breach of fiduciary duty under ERISA.
New York Life and its subsidiaries own and run the MainStay funds.