Auto Part Maker GKN Settles 401(k) Suit for Nearly $3 Million

GKN North America Services Inc. agreed to pay $2.95 million to resolve a proposed class action saying the auto part maker used a 401(k) asset allocation service that funneled workers’ retirement savings into overpriced and conflicted funds.

The deal is expected to benefit more than 14,000 people covered by GKN’s retirement plan since 2016, the plaintiffs said in a settlement motion filed Thursday in the US District Court for the Eastern District of Michigan.

The lawsuit centers on the GKN plan’s reliance on the GoalMaker asset allocation tool from Prudential Insurance Co., which isn’t named as a defendant. Plan participants ...