T-Mobile Workers Hit Fidelity With Another 401(k) Kickback Case

FMR LLC, the parent company of Fidelity Investments, was hit with a proposed class action by another T-Mobile USA, Inc. 401(K) participant, alleging mismanagement and kickbacks.

Fidelity requires various mutual funds, mutual fund advisers, and investment funds, to make secret payments to Fidelity for its own benefit in the guise of “infrastructure” payments or fees in violation of the Employee Retirement Income Security Act, according to the suit filed in the U.S. District Court for the District of Massachusetts July 23.

Fidelity’s receipt of alleged kickback payments related to its “FundsNetwork” investment platform violates ERISA’s prohibited transaction and fiduciary ...