Teachers File Suit Against Fund Over Kickbacks

By Bailey Somers (April 5, 2007, 12:00 AM EDT) -- A New York teachers pension fund breached its fiduciary duty by accepting kickbacks in exchange for promoting certain investment plans, according to a newly filed class action lawsuit.

Participants in the New York State United Teachers Member Benefits Trust have slapped the trust with a lawsuit claiming that the fund accepted payments in return for pushing a high-fee investment offered by ING Groep N.V.

The suit also names ING as a defendant.

ING allegedly reimbursed the trust for the salaries of the employees charged with recommending the investment to participants in the fund.

"NYSUT and NYSUT Trust received millions of dollars...

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