Fidelity Investments ERISA Investigation

02.27.2019

Girard Sharp is investigating claims that Fidelity Investments is pocketing tens of millions of dollars per year at the expense of its retirement-plan clients by charging them hidden fees that may violate federal law. Read our complaint on the pending cases page here.

If you own a 401(k) account or shares in an investment fund through Fidelity, you may have a claim for relief. Protect your rights by speaking with a Girard Sharp securities fraud attorney (dial 415-981-4800) or by submitting your information below:

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Relevant Funds

If you have put retirement savings into a low-cost fund on the Fidelity platform, you may be entitled to compensation. Relevant funds include:

  • Eaton Vance Corp.
  • Nuveen Investments
  • Pacific Investment Management Co. (“Pimco”)
  • Thrivent Financial for Lutherans

Spokeswomen from Eaton Vance and Pimco declined to comment on whether they disclose so-called infrastructure fees to their clients.

Contact Girard Sharp LLP for a free and confidential case consultation by calling toll-free at (415) 981-4800 or by filling out the form above.

ERISA Investigation of Fidelity Investments

The Employee Retirement Income Security Act (ERISA) establishes minimum standards for pension plans in private industries. The Act requires disclosure of indirect compensation via fees or charges.

Individuals may be able to seek relief under ERISA if they own a 401(k) account, or shares in an investment fund, through a provider that is violating the statute.

Recent Complaints

In 2016 Fidelity Investments reportedly implemented an annual charge called an “infrastructure fee.” According to reporting in the Wall Street Journal, the fee amounts to 0.15% of the total assets in a plan, rather than being limited to the assets held by a customer through Fidelity’s platform. And by calling the fee an “infrastructure fee,” the Journal reported, Fidelity purports to be able to refrain from disclosing it to investor customers.

A separate lawsuit was filed in February 2019 by a 401(k)-plan participant for similar “undisclosed kickbacks.” That class-action suit alleges that Fidelity required investment entities, such as mutual funds, to make “kickback” payments if revenue-sharing payments made to Fidelity fell below a certain level.

Girard Sharp attorneys are investigating whether these alleged fees and payments violate ERISA. If you own a 401(k) account or shares in an investment fund through Fidelity Investments, you may have a claim for relief. Please contact Girard Sharp LLP for a free and confidential case consultation by calling toll-free at (415) 981-4800 or by filling out the form toward the top of this page.

Read the Wall Street Journal article here.

Our Commitment to Excellence

Girard Sharp has earned national Tier 1 rankings for Mass Tort and Class Action Litigation and has been named to the U.S. News – Best Lawyers “Best Law Firms” list each year since 2013. Read about some of our results.

We have recovered over a billion dollars for our clients against some of the nations largest corporations, such as Raymond James, Peregrine Financial Group, and OppenheimerFunds, in cases arising from securities fraud, false advertising and other unfair business practices.

For a free consultation about your potential claims, contact one of our investment fraud attorneys at (415) 981-4800.

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