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Litigation Developments

A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.

MIT Lawsuit

Claims of breaches in fiduciary duty due to excessive recordkeeping and investment fees for some of the funds in the MIT defined contribution plan stand, according to a federal judge in this case. That said, however, the judge differed from the magistrate’s ruling regarding the claim of prohibited transactions based on an “alleged kickback scheme […]

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Fee-Only Advisory Firm References at Issue

The Certified Financial Planner Board of Standards disciplined six financial advisers for compensation miscommunications, receiving commissions when claiming to be fee-only. There is no official regulatory or legal definition of fee only. The CFP Board allows CFPs to utilize the term fee-only only if all compensation is derived from clients in that manner. That said, […]

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General Electric Self-Dealing Case

General Electric (GE) 401(k) Plan participants have filed a class action lawsuit claiming self-dealing practices on the part of GE and GE 401(k) Plan fiduciaries, asserting that GE representatives encouraged investment of 401(k) assets in GE’s proprietary mutual funds that GE Asset Management (GEAM) managed (until July 1, 2016 at which time State Street purchased), […]

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