NeuGen, a Madison-based company formed by WEA Trust, has filed a lawsuit against Massachusetts-based MassMutual, claiming that the termination of a retirement fund led to a $3 million loss for nearly 300 of its former employees, according to a report from the Wisconsin State Journal.
The loss occurred after NeuGen, which was established in 2018 to provide benefits to public school employees, announced layoffs in 2022 and informed MassMutual of its downsizing. In response, MassMutual ceased NeuGen’s access to an investment fund, resulting in an 18% drop in the affected participants’ 401(k) investments. NeuGen accuses MassMutual of opting for a hasty decision without considering alternatives to preserve the retirement funds’ value. The lawsuit was filed in Suffolk County Superior Court in Massachusetts, with MassMutual yet to respond.
