Fidelity Hit With ERISA Suit For Skimming Float Interest

Law360, Los Angeles (March 7, 2013, 7:03 PM EST) -- Fidelity Management & Trust Co. was hit with a putative class action in Massachusetts federal court Thursday by 401(k) plan participants who allege Fidelity misused the plans’ “float income” by temporarily investing it for its own benefit, in violation of the Employee Retirement Income Securities Act.

The suit, filed by participants in 401(k) plans for Bank of America, EMC Corp. and Safety Insurance Co. on behalf of those similarly situated, raises allegations that Fidelity and its subsidiaries generated extra income when plan assets were placed in...
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