American Century Beats 401(k) Class Action After Trial

American Century Services LLC defeated a 2,500-person class action by employees who challenged the proprietary mutual funds in their 401(k) plan.

The investment firm didn’t act disloyally by offering nothing but affiliated funds in its 401(k) plan, because the company truly believed in the quality of these funds and thought employees would benefit from familiarity with the funds and the people managing them, Chief Judge Greg Kays of the U.S. District Court for the Western District of Missouri said in a Jan. 23 ruling.

The decision comes four months after an 11-day trial before Kays.

More than 30 companies have ...