Investment firm skimmed GM worker funds, suit alleges
Firm has filed similar lawsuits against Fidelity before
A lawsuit filed against Fidelity Investments, claims the company illegally skimmed tens of millions of dollars from the retirement accounts of General Motors hourly workers. The lawsuit was filed Thursday in U.S. District Court in Massachusetts.
READ: GM vs. Fidelity Investments
The suit, a copy of which was obtained by Local 4, claims Fidelity kept the interest earned on GM worker's money as it traveled through the banking system after being deposited, transferred, or withdrawn. Those accounts earn interest known in the industry at "float income".
The Boston law firm which filed the suit on behalf of a GM worker, has filed similar suits against Fidelity. Fidelity has contended the companies’ practices are consistent with the law.