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TIAA Accused of Misusing Client Data to Push High-Fee Products

Oct. 12, 2021, 7:42 PM

Teachers Insurance & Annuity Association of America used fraudulent sales tactics to move clients from low-fee 401(k) plans to expensive, non-plan alternatives that earned fees for the company, a proposed class action filed in Manhattan federal court alleges.

Retired Dartmouth College professor John Carfora accuses TIAA of abusing its position as a record keeper for employer-sponsored 401(k) plans in order to “harvest highly confidential and personal financial data” about plan participants. TIAA used this information to identify participants with large account balances who were nearing retirement age and target them with “manipulative ‘fear selling’ tactics” that steered them toward high-cost ...

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