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Fidelity, Putnam Lose Early Bids to Dismiss ERISA Lawsuits

April 11, 2016, 4:00 AM

Both Fidelity Management Trust Co. and Putnam Investments LLC must defend lawsuits accusing them of charging high 401(k) fees and using unwise investment strategies (Brotherston v. Putnam Invs., LLC, D. Mass., 1:15-cv-13825-WGY, 4/7/16).

In an unusual move, a federal judge in the U.S. District Court for the District of Massachusetts April 7 issued a three-page order allowing two different proposed class actions to survive the companies’ motions to dismiss. The judge didn’t explain the reasoning behind his decision, other than to say that “dismissal is often inappropriate” in “factually complex” lawsuits under the Employee Retirement Income Security ...