Five things to know:
1. The lawsuit, filed by two individuals in a company 403(b) plan — a retirement plan designed for certain employees of tax-exempt organizations — alleged that Spectrum executives overpaid for poor-performing target date funds and allowed high record-keeping fees, according to the report.
2. In September 2020, plaintiffs filed the suit against Spectrum, arguing that the plan’s offering of a target-date series from Voya Financial performed worse and cost more than other target-date series from the company, according to the report. The lawsuit also alleged that record-keeping fees were excessive. Voya Financial was not named as a defendant in the case.
3. Spectrum has agreed to pay the $6 million settlement, but does not admit any wrongdoing, according to the settlement agreement.
4. The settlement was submitted March 10 to a U.S. District Court and is awaiting approval.
5. Spectrum’s 403(b) plan had assets of $2.68 billion as of Dec. 31, 2021, according to the report.
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