Ellen M. Doyle of Stember Feinstein Doyle & Payne told PLANADVISER.com the firm was investigating another financial institution when it recognized the same problems existed at M&I. She also said several current and former employees of M&I have contacted the law firm.
“We believe that the detriment to the employees was tens of millions of dollars over the last three years because the funds underperformed and the fees were higher than average,” Doyle said in correspondence with PLANADVISER.com.
According to an announcement from the law firm, the investigation will include determining the amount of fees that M&I generated by investments in the Marshall Funds within the 401(k) plan and whether these fees were a factor in the company’s decision to offer the poor-performing funds instead of other mutual funds with higher returns.
A request by PLANADVISER.com for comment from Marshall & Ilsley about the investigation has not yet been returned.
New York Life Insurance Co. last month agreed to a $14-million settlement of charges it improperly directed employees’ and agents’ retirement savings into its proprietary mutual funds (See Court Approves Settlement of New York Life Self-Dealing Case). Other similar cases against Wells Fargo (See 401(k) Participant Accuses Wells Fargo of Self-Dealing) and Citigroup (See Citigroup Hit with 401(k) Suit over ERISA Violations) are pending.
Individuals wanting more information about the M&I investigation can email firstname.lastname@example.org.