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John Hancock Foreign Tax Credit Case

Plaintiffs in this case, trustees of a law firm’s 401(k) Plan recordkept by John Hancock, are alleging that John Hancock is improperly pocketing foreign tax credits generated by the variable annuity contracts offered in the Plan, breaching fiduciary duty and participating in prohibited transactions. The basis for this case is the tax code provision which permits mutual funds that invest in foreign companies to pass foreign tax credits to their shareholders. Plaintiffs are seeking class action status. John Hancock has declined to comment at this juncture.; March 26, 2019.