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Ameriprise Agrees to $27.5M 401(k) Settlement for Over-Charging its Own Employees

AmeripriseAmeriprise Agrees to $27.5M 401(k) Settlement for Over-Charging its Own Employees

Ameriprise has been sued for its investment advice to its own employees-charging its employees high fees and using expensive proprietary funds–rather than lower cost funds.
Ameriprise Financial agreed to pay $27.5 million to settle a class-action lawsuit that alleged it broke its fiduciary duty to about 24,000 current and former participants in its own retirement plan. The suit took four years, but won a multi-million dollar settlement.

While Ameriprise denied the suit, it settled just before the case was set to go to trial, which is very common for large brokerage firms.
Ameriprise Financial has a significant history of FINRA regulatory violations, customer complaints, and arbitrations. Ameriprise has more than 100 customer arbitrations and more than 50 “Regulatory Events” indicated on its license. A regulatory event means a customer complaint that is filed against a brokerage firm, or in some cases civil penalties, fines, or censures against the firm

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