Edward Jones Embroiled in Lawsuit for Risky Mutual Fund Losses

AdobeStock_112465076-1-300x164Certain 401k plan participants with Edward Jones have challenged the firm’s recommendations. The participants filed a lawsuit against the firm, claiming that the retirement classes of mutual funds should have been replaced with lower-cost classes that were less risky. It was also alleged that Edward Jones breached its fiduciary duty by neglecting to negotiate a lower-cost fee arrangement with Mercer HR Services for its administrative costs. Edward Jones then filed a lawsuit to dismiss, and claimed that the plan participants failed to properly state a claim, and failed to show that the fiduciary’s decision was based on making a profit, rather than a legitimate claim. District Judge Ross stated that the plan participants included plenty of details to claim the company used risky and costly funds in the plan, and so denied Edward Jones’ Motion to Dismiss in the pending lawsuit. The judge also claimed that the firm failed to prudently monitor and control compensation to Mercer when its fees tripled.

FOX Business
The Wall Street Journal
FOX News Channel
USA Today
abc NEWS
Contact Information