Mutual Funds Lawsuit
alleging financial companies breached ERISA act with employee 401k plan holders.
ERISA Mutual Fund
When banks and financial services companies offer their own mutual funds to participants in 401(k) plans they establish for their employees, and they do not negotiate lower management and other fees they are violating their fiduciary duty to act solely in the 401(k) participants best interests.
According to an expert in securities, the Institute for Fiduciary Studies has set the limits for the appropriateness of mutual funds as an investment vehicle for 401(k) participants at an aggregate of $30 million. He notes that some of these larger financial institutions have 401(k) plans with hundreds of millions of dollars invested in mutual funds, which is far more than appropriate for an investor to invest in mutual funds. These companies make money from offering their own mutual funds to employees, with higher fees, which places them in a conflict of interest and in violation of their fiduciary duty under a federal law known as ERISA.
Under ERISA fiduciaries have a duty to act solely in the best interests of plan participants, and not in their own interest. By not investing in stocks managed by the same money managers that are managing the mutual funds at a much lower cost, the fiduciary is not acting in the best interest of plan participants but in their own interest.
The Lowe Law Firm is currently investigating the possibility of a class action lawsuit against certain banks and financial companies that offer their own mutual funds to employees when the 401(k) plan has more money than is appropriate investment in mutual funds. Current or past employees of banks and financial companies that offer their own mutual funds to plan participants may be eligible to join a class action lawsuit against such firms.
Employee 401(k) Mutual Fund ArticlesMutual Fund ERISA: Individuals Can Sue for Losses
A landmark Supreme Court decision that could have wide-ranging implication for mutual fund ERISA lawsuits was handed down earlier this week.
Supreme Court Upholds Individual’s Right to Sue Over 401(k)
You could forgive James LaRue for being ticked with the administrators alleged to have mis-managed his 401(k) investments after the value of his holdings plunged $150,000. His instructions were to move his portfolio into safer investments.
Investors Investigate Mutual Fund ERISA Lawsuit
Employees of financial firms are investigating the possibility of a lawsuit against their employers, alleging that their money was improperly invested in mutual funds. They argue that their money could have been invested in funds that have lower fees than mutual funds do and it was inappropriate for the money to be invested in mutual funds.
Employee 401(k) Mutual Funds In the NewsFEB-21-08: The Supreme Court has ruled that 401(k) retirement account holders can sue plan administrators for mismanaging their money. [US NEWS: 401(k) ERISA]
Employee 401(k) Mutual Fund Legal HelpIf you are an employee or former employee of a bank or financial services company that offered it's own mutual funds as an investment option to its 401(k) plan participants, please click the link below to send your complaint to a lawyer to evaluate your claim at no cost or obligation.
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