Principal Sued Over Alleged Westgate Ponzi Scheme

Law360, New York (September 21, 2009, 2:23 PM EDT) -- The Principal Financial Group has been hit with a putative class action accusing the financial services company of failing to undertake basic checks that would have protected retirement account holders from unwittingly investing in an alleged Ponzi scheme run by Westgate Capital Management LLC.

The suit was filed Friday in the U.S. District Court for the Southern District of New York, on behalf of individuals and businesses who held pension or individual retirement accounts in custody and trust with Principal Financial, and whose funds were then...
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