UnitedHealth Inks $69 Million Deal Over Wells Fargo 401(k) Funds

UnitedHealth Group Inc. agreed to pay $69 million to settle a class action challenging the use of Wells Fargo & Co. target date funds in its $15 billion 401(k) plan.

The deal is “the largest-ever ERISA settlement alleging breach of fiduciary duty for failure to remove underperforming investment options,” according to a motion filed Friday in the US District Court for the District of Minnesota seeking its approval.

The proposed settlement comprises between 20% and 25% of potential damages to the class, the motion said.

The class action takes aim at the suite of Wells Fargo target date funds chosen ...