NEW YORK – Fiduciaries of a retirement plan sponsored by DST Systems Inc. — including New York City-based investment management firm Ruane, Cunniff & Goldfarb Inc. — will pay more than $124.6 million to resolve violations of federal law related to their failure to manage the profit-sharing portion of the plan properly.

DST Systems, an information processing software and service provider based in Kansas City, was acquired by SS&C Technologies Holdings Inc. in Windsor, Connecticut.

The settlement resolves litigation by the U.S. Department of Labor and private plaintiffs against Ruane, Cunniff & Goldfarb, DST Systems and individual defendants, pending court approval of the related class action settlement. In October 2019, the department filed suit in the U.S. District Court for the Southern District of New York alleging that defendants violated the Employee Retirement Income Security Act by failing to diversify the plan’s assets to minimize the risk of large losses and failing to act prudently and loyally in managing these assets when the investment manager invested the plan’s assets on a highly concentrated basis in a select number of securities.

The complaint highlighted an example in which the investment manager invested the plan’s assets in the stock of a single pharmaceutical company, Valeant Pharmaceuticals International Inc. The concentration in Valeant stock grew to more than 45 percent of the plan’s assets. Soon after, Valeant’s stock fell dramatically in...

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