http://online.wsj.com/article/SB1000142405270230391880457910... (subscription required) Story on page C1 today.Wall Street Journal today has article reporting that International Paper has reached a settlement in a lawsuit charging excessive charges and fraudulent reporting in their 401k. The company will pay $30MM to settle. Suit claimed recordkeeping and management fees (paid to JP Morgan) were excessive and that reports of performance history were "fraudulent." The company delayed investing contributed funds and profited from interest on the funds held. Also mentioned, a recent settlement with Cigna. Pending lawsuits against Boeing and Lockheed Martin.New rules require fee disclosure. Those with 401k plans should be paying attention to those fee schedules.Report in the St. Louis Post-Dispatch also mentions settlements with Anheuser-Busch, Fidelity Investments, Caterpillar, General Dynamics, Bechtel and Kraft Foods.http://www.stltoday.com/business/columns/david-nicklaus/inte...
So the 30MM question is - who gets the fine, the employees, the attorneys, or someone else. I don't have a subscription so perhaps the article covers this.I am guessing that the robbed employees get less than half of what they are owed.Who created the fradulent documents?
So, maybe that's why, all of a sudden, my company announced an improvement to our Fidelity plan, lower fee class of investment options and moved everything....well, maybe...
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