An investigation for participants in the Charter Township of Bloomfield Defined Benefit Pension Plan concerning potential Breaches of Fiduciary Duty by the plan administrator Prudential was announced.
If you are an existing or former participant of the Charter Township of Bloomfield Defined Benefit Pension Plan, you have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the investigation by a law firm under the federal Employee Retirement Income Security Act (“ERISA”) current or former participants in the Charter Township of Bloomfield Defined Benefit Pension Plan may be eligible to file an ERISA complaint for putting stock options at risk if they can prove that the plan administrator violated its fiduciary duty to them.
Recently a former participant of the Ferguson Enterprises, Inc. 401(k) Retirement Savings Plan f/k/a Wolseley North America 401(k) filed a lawsuit against Prudential Retirement Insurance and Annuity Company, Prudential Bank & Trust, FSB and Prudential Investment Management Services, LLC. The plaintiff alleges Prudential literally has lined its pockets with tens of millions of dollars in revenue sharing payments by and through self-dealing, other prohibited transactions and breaches of its fiduciary duties.
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 Charter Township of Bloomfield Defined Benefit Pension Plan have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
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