Search By:
Products
Injury
Topic
Company
Industry
Fidelity might have received illegal kickbacks from mutual funds for promoting those funds to the retirement plans for which Fidelity served as trustee.
Investigation Source (Case #07-cv-11344-JLT)
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Illegal Kickbacks
- Investments
- Undisclosed Fees By Investment Advisors
- Retirement Asset
Products or Services
- Retirement Plan
- Employee Retirement Plan Sponsors or Administrators
Injury Type
- Monetary Loss
Investigation Details
Investigation and pending class action lawsuit against Fidelity Management Trust Company brought on behalf of all trustees, sponsors and administrators of employee benefit plans (the "Plans") for which Fidelity Management Trust Company has served as a trustee.
The class action complaint alleges that Fidelity breached its fiduciary duties to employee benefit plans by charging excessive fees for its services and engaging in prohibited transactions. Specifically, the class action complaint alleges that the Plans paid investment fees to third party mutual funds chosen by Fidelity, that Fidelity received kickbacks from those mutual funds from the investment fees, and that Fidelity kept those kickbacks for its own benefit rather than crediting the money received to the Plans.
The class action complaint alleges that Fidelity breached its fiduciary duties to employee benefit plans by charging excessive fees for its services and engaging in prohibited transactions. Specifically, the class action complaint alleges that the Plans paid investment fees to third party mutual funds chosen by Fidelity, that Fidelity received kickbacks from those mutual funds from the investment fees, and that Fidelity kept those kickbacks for its own benefit rather than crediting the money received to the Plans.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| Fidelity Investments | Fidelity Investments is an international provider of financial services and investment resources for individuals and institutions. Fidelity Investments is best known for its family of mutual funds. |
| Fidelity Management Trust Company | Fidelity Management Trust Company provides trust services including valuation and accounting services for employee benefit plans. |