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American Skandia Life Assurance Corporation might have received undisclosed kickback fees from mutual funds within the annuity products American Skandia sold to retirement plans.
Investigation Source
Investigation Scope
Category Information
Investigation Topics
- Illegal Kickbacks
- Investments
- Undisclosed Fees By Investment Advisors
- Investment Advisor Duties
- Unsuitable Annuities
Products or Services
- Retirement Plan
- Employee Retirement Plan Sponsors or Administrators
- Annuities
Injury Type
- Monetary Loss
Investigation Details
Investigation and pending class action lawsuit against American Skandia Life Assurance Corporation brought on behalf of all trustees, sponsors and administrators of employee benefit plans (the "Plans") that own variable annuity contracts from American Skandia Life Assurance Corporation
The class action complaint alleges that American Skandia breached its fiduciary duties to the Plans by charging excessive fees for its services and engaging in prohibited transactions. Specifically, the class action complaint alleges that American Skandia received payments from mutual funds in which it invested funds from the Plans, and that American Skandia improperly kept those payments for its own benefit rather than crediting the money received to the Plans.
The class action complaint alleges that American Skandia breached its fiduciary duties to the Plans by charging excessive fees for its services and engaging in prohibited transactions. Specifically, the class action complaint alleges that American Skandia received payments from mutual funds in which it invested funds from the Plans, and that American Skandia improperly kept those payments for its own benefit rather than crediting the money received to the Plans.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| American Skandia Life Assurance Corporation | American Skandia Life Assurance Corporation sells variable and fixed annuities. Prudential Financial Inc wholly owns American Skandia Life Assurance Corporation. American Skandia products are now sold under the PRudential name. |