ADP, American Century Allegedly Failed to Train IRA Sales Team

Automatic Data Processing Inc. and American Century Investments gave unregistered and unlicensed ADP employees improper training to sell individual retirement accounts containing American Century mutual funds, a shareholder class action says.

American Century allegedly encouraged the use of the unqualified personnel to sell the IRA plans, and participated in training the ADP employees, while both companies failed to disclose that those personnel are required or otherwise incentivized to sell a certain number of IRAs, according to the complaint filed Tuesday in US District Court for the Middle District of Florida.

ADP and American Century fraudulently induced retirement savers into purchasing ...