All articles tagged with #fiduciary duty
The Labor Department has reversed its previous guidance that discouraged including cryptocurrencies in 401(k) plans, returning to a neutral stance and emphasizing that investment decisions should be made by fiduciaries, not regulators.
UnitedHealth Group faces multiple lawsuits, including a class-action claim alleging it improperly used $19 million in forfeited employee 401(k) funds to reduce its own costs instead of benefiting plan participants, violating fiduciary duties under ERISA. The company denies the allegations and is seeking to dismiss the case. It also faces other legal challenges related to healthcare practices and corporate conduct.
UnitedHealth Group is facing a class-action lawsuit alleging it improperly used employees' forfeited 401(k) funds to reduce its own costs, violating fiduciary duties under ERISA. The company denies the claims amid multiple legal challenges related to its business practices.
Lachlan Murdoch has officially taken over as chairman of News Corporation and Fox Corporation from his father Rupert Murdoch. While Lachlan has stated that there will be "no change" in strategy at Fox News, he will inherit a series of legal claims related to the TV news division, including a $787 million settlement with Dominion Voting Systems. Other claims include a $2.7 billion defamation complaint by Smartmatic, allegations of breaching fiduciary duty by Oregon and New York City pension funds, and lawsuits involving individuals such as Ray Epps, Jason Donner, and Nina Jankowicz. Lachlan's challenge will be to navigate these legal issues while maintaining the success of Fox News programming.
President Biden delivered remarks on protecting Americans' retirement security, highlighting the need to crack down on unfair and deceptive junk fees that burden families' budgets. He emphasized the importance of promoting competition and lowering costs for families, and announced additional actions to eliminate junk fees in retirement savings. The Department of Labor is proposing a new rule that would require financial advisors to act in the best interest of their clients, closing loopholes and penalizing those who breach their fiduciary duty. The goal is to protect workers, save for retirement, and ensure fairness in the economy.
Former President Trump opposes Michael Cohen's attempt to dismiss a lawsuit alleging breach of fiduciary duty. Trump accused Cohen of "egregious breaches of fiduciary duty and contract" in connection with the publication of books and the production of a podcast that "are intended to be embarrassing or detrimental" to Trump. Cohen cast it as an attempt to silence "an important government witness" in the Manhattan district attorney's criminal prosecution of Trump.
Utah Attorney General Sean Reyes, one of 25 Republican attorneys general suing the US Department of Labor over a rule that would allow federal retirement plans to consider climate change and other environmental, social and governance (ESG) factors, has told a congressional committee that ESG investing is "distorting our financial system and harming consumers and working-class Americans". Reyes said ESG was an "undemocratic tax on our economy and productivity". Democrats on the committee pushed back, saying ESG investing can be a better long-term investment by factoring in risks associated with industries that contribute to climate change.
Ademi LLP is investigating whether CTI BioPharma Corp. has obtained a fair price in its transaction with Sobi. CTI BioPharma stockholders are expected to receive only $9.10 per share of common stock in an all-cash transaction, representing an implied equity value of approximately $1.7 billion. The transaction agreement unreasonably limits competing bids for CTI BioPharma by imposing a significant penalty if CTI BioPharma accepts a superior bid. CTI BioPharma insiders will receive substantial benefits as part of change of control arrangements.
Former President Donald Trump has filed a lawsuit against his former attorney, Michael Cohen, for more than $500 million, claiming Cohen breached his "fiduciary duty" and attorney-client privileges in order to be "unjustly enriched." The suit comes after the former president pleaded not guilty to 34 felony charges last week. Cohen is a key witness in that case. Cohen says he ceased to be Trump's lawyer in 2017, and pleaded guilty in 2018 to campaign finance violations and other charges, stating as part of his guilty plea that he and Trump arranged the payment to Daniels to influence the outcome of the 2016 presidential election.
Former President Donald Trump has filed a lawsuit against his former lawyer Michael Cohen, seeking over $500 million in damages for alleged breaches of fiduciary duty, unjust enrichment, conversion, and breaches of contract. The complaint accuses Cohen of violating his attorney-client relationship with Trump by publicly disclosing information about the former president and spreading falsehoods about him. Trump's lawyer claims that Cohen did those things with malicious intent and to wholly self-serving ends. Trump wants compensatory, incidental, and punitive damages in an amount that would be determined at a trial and would substantially exceed $500 million.
A coalition of 21 state attorneys general has warned 53 of the nation's largest financial institutions against pursuing woke environmental and social initiatives, threatening legal action if the firms veer from the best interests of their clients while pushing social priorities. The attorneys general accused ESG-focused asset managers of sidestepping their legally-mandated fiduciary duty of looking out for the wellbeing of clients whose money they manage. They also took particular issue with ESG practices that push aggressive climate policies which opponents have argued would hamper the fossil fuel industry and increase consumer energy prices.
President Biden vetoed a bill that would end a Labor Department rule allowing retirement fund managers to use ESG metrics when managing funds, prioritizing the liberal agenda over actual returns. The move eviscerates the decades-old rule that retirement funds aim to maximize returns. The Democratic Senate passed a House-approved bill to block it, but Biden claimed that not sinking money into woke companies "would put at risk the retirement savings of individuals across the country."