Power transmitting component with torque transfer device configured with drag reduction system

The present teachings provide for a power transmitting component including a housing, a clutch, a vent, and a dam. The vent can fluidly couple a first and second cavity. The dam can include a door member. Rotation of the outer carrier through a fluid in the second cavity can sling a portion of the fluid toward the vent to cause the portion of the fluid to be transferred from the second cavity, through the vent, and to the first cavity. When the piston is in a first position, the door member can be in a closed position to limit fluid flow from the first cavity to the second cavity. When the piston is in a second position, the door member can be in an open position to allow fluid to flow from the first cavity to the second cavity.