Principal To Face Westgate Fiduciary Breach Claims

Law360, New York (May 27, 2011, 5:21 PM EDT) -- A New York federal judge on Thursday allowed to continue a class action alleging Principal Financial Group Inc. breached its fiduciary duty to retirement account holders by letting them unwittingly invest in a Ponzi scheme run by Westgate Capital Management LLC.

U.S. District Judge Robert W. Sweet ruled that the motion to dismiss phase was not the proper forum for pursuing questions about Principal Financial's fiduciary duties under state law in its role as custodian of the retirement accounts. The judge cited an earlier ruling in...
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