Fidelity Looks to Kill Appeal in Illegal 401(k) Kickback Lawsuit

The parent company of Fidelity Investments defended against allegations of an illegal kickback scheme in its 401(k) investment platform, telling the U.S. Court of Appeals for the First Circuit that it can’t be liable as an ERISA fiduciary for negotiating the infrastructure fees it charges mutual fund managers on the platform.

Fidelity doesn’t act as a fiduciary under the Employee Retirement Income Security Act with respect to the fees it charges to mutual funds offered through its FundsNetwork investment platform, because it has no control over the ERISA-covered retirement plans that use the platform to choose mutual funds for their ...