In a class-action lawsuit filed last week in a Kansas City federal district court, Home Quest Mortgage owner Donna Huffman alleges that the Boston fund giant and its Roseland, N.J.-based outsourcer tried to hide the exact costs of their tax-friendly Savings Incentive Match Plans, or SIMPLE plans, that they make available to businesses with fewer than 100 employees.
The suit further alleges that small business owners that purchased SIMPLE IRAs from the companies between November 1998 and January 2004 were subject to financial damages, according to The Kansas City Star.
The suit does not specify damages, but it does name executives, fund managers and other employees of the two companies as defendants. Both companies declined to comment on the case, the Kansas City Star said.
Specifically, the lawsuit indicates that the business owners were not made aware of a revenue-sharing agreement between Fidelity and ADP.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.