Principal Again Fails To Slip Westgate Ponzi Action

Law360, New York (August 31, 2011, 1:35 PM EDT) -- A New York federal judge again refused on Tuesday to dismiss 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 Mangement LLC.

Ruling on a motion for reconsideration of his May order, U.S. District Judge Robert W. Sweet reiterated his finding that the motion to dismiss phase was not the proper forum for considering Principal Financial's fiduciary duties under state law in its role as custodian of...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.