Fidelity Investments violated federal benefits law when it failed to monitor the mutual fund investments and administrative expenses in its workers’ 401(k) plan, a federal judge in Boston ruled Friday.
Fidelity, also known as FMR LLC, breached its fiduciary duty of prudence under the Employee Retirement Income Security Act by failing to monitor the funds and expenses, Judge William G. Young of the U.S. District Court for the District of Massachusetts ruled. But Fidelity didn’t breach its duty of loyalty and didn’t engage in transactions prohibited by the statute, Young said.
Young’s lengthy order decided many outstanding issues in the ...