Investigation for Participants in the Prudential-Managed Jack Henry & Associates, Inc. 401(k) Retirement Savings Plan
An investigation on behalf of participants of the
If you are an existing or former participant of the
According to the investigation by a law firm under the federal Employee Retirement Income Security Act ("ERISA") current or former participants in the
Recently a former participant of the
The plaintiff alleges that the kickback payments at issue are essentially part of a pay-to-play scheme in which Prudential receives payments from mutual funds in the form of fees in return for providing the mutual funds with access to its retirement plan customers. The plaintiff claims that the Prudential has entered into revenue sharing agreements and similar arrangements with various mutual funds, affiliates of mutual funds, mutual fund advisors, sub-advisors, investment funds, including collective trusts, and other investment advisors, instruments or vehicles, pursuant to which Prudential receives revenue sharing payments (which amount to kickbacks) for its own benefit from these mutual funds in violation of, inter alia, the prohibited transaction rules of the Employee Retirement Income Security Act ("ERISA"), as well as ERISA's fiduciary rules.
The plaintiff alleges that Prudential uses its ownership and control over separate accounts in which its retirement plan customers' investments are placed to negotiate for the receipt of these revenue sharing payments from mutual funds, and the revenue sharing payments have the effect of increasing the expense ratios of the mutual funds, which expenses are deducted directly from the assets of the separate accounts.
The plaintiff says that Prudential describes and deceptively characterizes the revenue-sharing payments as "service fees" and reimbursement for expenses racked up in providing services on behalf of the mutual funds, and that the amounts of the revenue-sharing payments bear absolutely no relationship to either the value or cost of the services, and Prudential provides the same services no matter the amount of revenue-sharing payments.
Those who are existing or former participant of the
Contact:
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
[email protected] more information on this press release visit: http://www.sbwire.com/press-releases/investigation-for-participants-in-the-prudential-managed-jack-henry-associates-inc-401k-retirement-savings-plan-746464.htm
Media Relations Contact
Telephone: 858-779-1554
Email: Click to Email
Web: http://www.ShareholdersFoundation.com
Compare auto Insurance Quotes the Smart Way – How to find The Best Coverage!
Kroll Bond Rating Agency Analyzes GSE CRT Updated Credit Score Trends
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News