Law360, New York (September 28, 2011, 10:28 PM EDT) -- Members of Ameriprise Financial Inc.'s 401(k) plan filed a proposed class action in Minnesota on Wednesday claiming they lost $20 million in investments because the financial services company favored its own underperforming subsidiary funds over investment plans with better performance records.
The members say that since 2005, the company had invested hundreds of millions of dollars into funds managed by its subsidiary RiverSource Investments LLC and Ameriprise Trust Co., even though those investment advisers charged higher fees than others.
The members claim that Ameriprise selected those...
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.