Verizon Settles 401(k) Hedge Fund Class Action Ahead of Trial

Verizon Communications Inc. announced plans to settle a 200,000-person class action challenging a hedge fund investment in the company’s 401(k) plan, averting a looming trial.

The settlement notice, filed Monday, comes one month before the parties were scheduled to begin a multi-day trial before Judge Paul G. Gardephe of the US District Court for the Southern District of New York. The parties reached an agreement following a two-day mediation session and plan to file the deal for court approval by July 7, according to the notice.

The lawsuit targets the Verizon plan’s Global Opportunity Fund, which invested in multiple ...