Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:A Judge Smites a Fidelity Client For Swapping Out Vanguard Wellington Not Rated 5.0 Email Routing List Email & Route  Print Print
Tuesday, April 3, 2012

A Judge Smites a Fidelity Client For Swapping Out Vanguard Wellington

News summary by MFWire's editors

A jumbo Fidelity [profile] 401(k) client, ABB, just lost a lawsuit over 401(k) fees and has been ordered to shell out $35.2 million. The Boston-based mutual fund giant must pay $1.7 million, too. And $21.8 million of those damages stems solely from ABB swapping out the Vanguard Wellington Fund and pouring the assets into the Fidelity Freedom target date funds.

Our sister publication The 401kWire reported on the news yesterday. Bloomberg, Dow Jones, Law360 and Reuters also covered the ruling.

"Instead of getting lower fees for ABB employees in their 401(k) plan, ABB and Fidelity used employees' retirement assets to benefit themselves," stated Jerry Schlicter, the lead trial lawyer for the plaintiffs.

Yet a Fidelity spokesman noted that the court tossed out "the vast majority of the claims against Fidelity."

"While the court is suspicious that the relationship between ABB and Fidelity Trust infected more than the specific instances identified in this order, the court cannot rely on suspicion and therefore rejects plaintiffs' global damage theory," the judge said.

And an ABB spokesman told Bloomberg and Dow Jones that the Swiss technology company is "looking at the ruling and will decide soon whether to appeal."

The 81 page ruling came out on March 30 after a four week trial. # 

Edited by: HFD


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

5.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use