Northern Trust Co. has agreed to pay $36 million to settle claims by plaintiffs in two 401(k) plans alleging the firm mismanaged investments in its securities lending business and charged excessive fees.
As part of the deal, Chicago-based Northern Trust and Northern Trust Investments denied any wrongdoing.
The suit, filed in 2009, was brought by a participant in an ExxonMobil 401(k) plan and another in a Texas Instruments plan. They alleged Northern Trust and Northern Trust Investments imprudently managed collateral pools in its securities lending program, according to court documents.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
