Investment firm skimmed GM worker funds, suit alleges

Firm has filed similar lawsuits against Fidelity before

Author: Griff Potter, Local 4 News Morning Executive Producer
Published On: Apr 26 2013 05:50:15 AM EDT   Updated On: Apr 26 2013 07:36:27 AM EDT
BOSTON -

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interest earned on GM worker's money as it traveled through the banking system after being deposited, transferred, or withdrawn.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.