Provident Trust Fends Off Retirement Investor Class Suit

Provident Trust Group LLC fended off a proposed class suit by investors alleging they lost retirement savings when they invested in a Ponzi scheme through self-directed individual retirement accounts administered by Provident.

Noel C. Murray and Swarna Perera alleged that some other financial service companies declined to allow customers to hold Woodbridge securities in their SDIRA accounts. But Provident took no steps to determine the nature, assets underlying, or value of the Woodbridge securities. The Woodbridge securities turned out to be part of a real estate Ponzi scheme orchestrated by Robert H. Shapiro, the plaintiffs said.

But the plaintiffs’ claims ...