{"id":1512,"date":"2014-09-05T15:48:03","date_gmt":"2014-09-05T15:48:03","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/09\/fidelity_investments_settles_c"},"modified":"2022-08-26T09:23:18","modified_gmt":"2022-08-26T14:23:18","slug":"fidelity-investments-settles-c","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/fidelity-investments-settles-c\/","title":{"rendered":"Fidelity Investments Settles Class Action Lawsuits Over 401(K) Plan for $12 million"},"content":{"rendered":"<p>Fidelity Investments has consented to pay $12 million to settle two class action employee lawsuits. The plaintiffs contend that the retirement plan provider was self-dealing in the FMR LLC Profit Sharing Plan and making money at their expense by offering employees high-cost fund options and making them pay excessive fees.<\/p>\n<p>Over 50,000 ex- and present employees are eligible to receive from the settlement. Fidelity is accused of providing just its own funds in the retirement plan for its workers, with certain investment options having little (if any) track record, while failing to use an impartial process when choosing the investment options.<\/p>\n<p>As part of the agreement, Fidelity Investments will now give employees a choice of non-Fidelity and Fidelity mutual funds, increase auto-enrollment to 7%, and allow participants of non-Fidelity mutual funds to benefit from revenue sharing, just like the participants of Fidelity mutual funds and collective trusts. The company also will keep offering a default investment alternative, the Fidelity Freedom Funds-Class. The Portfolio Advisory Services at Work program will be provided for free.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/fidelity-investments-settles-c\/\"  title=\"Continue Reading Fidelity Investments Settles Class Action Lawsuits Over 401(K) Plan for $12 million\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fidelity Investments has consented to pay $12 million to settle two class action employee lawsuits. The plaintiffs contend that the retirement plan provider was self-dealing in the FMR LLC Profit Sharing Plan and making money at their expense by offering employees high-cost fund options and making them pay excessive fees. Over 50,000 ex- and present [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3804,3819,3752],"tags":[],"class_list":["post-1512","post","type-post","status-publish","format-standard","hentry","category-class-action-lawsuits","category-fidelity","category-financial-firms"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fidelity Investments Settles Class Action Lawsuits | SSEK Law<\/title>\n<meta name=\"description\" content=\"Fidelity Investments has consented to pay $12 million to settle two class action employee lawsuits. Read our article to find out more about the case.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/fidelity-investments-settles-c\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Fidelity Investments Settles Class Action Lawsuits | SSEK Law\" \/>\n<meta name=\"twitter:description\" content=\"Fidelity Investments has consented to pay $12 million to settle two class action employee lawsuits. Read our article to find out more about the case.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Fidelity Investments Settles Class Action Lawsuits | SSEK Law","description":"Fidelity Investments has consented to pay $12 million to settle two class action employee lawsuits. 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