{"id":5450,"date":"2013-05-06T00:00:00","date_gmt":"2013-05-06T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/05\/investor_files_securities_case"},"modified":"2022-05-04T13:46:19","modified_gmt":"2022-05-04T18:46:19","slug":"investor-files-securities-case","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/investor-files-securities-case\/","title":{"rendered":"Investor Files Securities Case Against Fidelity Over Float Income Investments Involving 401(K)s"},"content":{"rendered":"<p>Investor Korine Brown is seeking class action status on behalf of those that also participated in General Motors Inc.&#8217;s Personal Savings Plan for hourly employees in her securities case against Fidelity Investments Institutional Operations Co. Inc. and Fidelity Management and Research Co. She is alleging breach of fiduciary duty. This is just the latest investment fraud case over Fidelity\u2019s handling of money that came from planned assets, as well as against other 401k providers.<\/p>\n<p>As of the end of 2011, the plan Brown has been a participant in contained about $46 billion in assets for over 100,000 account holders. The plaintiff claims that Fidelity Research breached its duty when it invested float income into Fidelity funds found in the plan menu.<\/p>\n<p>Float income is money generated from redemptions, contributions, and transfers of planned assets when they are briefly put in in interest bearing accounts. Brown believes that Fidelity Investments Institutional Operations breached its duty when it used the float income, which she says is a plan asset, to take care of operating costs. She claims that Fidelity didn\u2019t let participants and the fiduciaries tasked with administrating the plan know about how the float income was being used.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/investor-files-securities-case\/\"  title=\"Continue Reading Investor Files Securities Case Against Fidelity Over Float Income Investments Involving 401(K)s\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Investor Korine Brown is seeking class action status on behalf of those that also participated in General Motors Inc.&#8217;s Personal Savings Plan for hourly employees in her securities case against Fidelity Investments Institutional Operations Co. Inc. and Fidelity Management and Research Co. She is alleging breach of fiduciary duty. This is just the latest investment [&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":[3752],"tags":[],"class_list":["post-5450","post","type-post","status-publish","format-standard","hentry","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>Investor Files Securities Case Against Fidelity Over Float Income Investments Involving 401(K)s &#8212; Investor Lawyers Blog &#8212; May 6, 2013<\/title>\n<meta name=\"description\" content=\"Investor Korine Brown is seeking class action status on behalf of those that also participated in General Motors Inc.&#039;s Personal Savings Plan for hourly &#8212; May 6, 2013\" \/>\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\/investor-files-securities-case\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Investor Files Securities Case Against Fidelity Over Float Income Investments Involving 401(K)s &#8212; 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