Court Dismisses Whistleblower Lawsuit Against Fidelity Investments
From the desk of Jim Eccleston at Eccleston Law
A federal court has dismissed a whistleblower lawsuit filed by a former financial advisor against Fidelity Investments. According to ThinkAdvisor, the case involves allegations that the company fired him for reporting unethical practices.
ThinkAdvisor reports that the court dismissed the case after a joint filing from both parties. Each side agreed to cover their legal fees and costs, concluding the legal dispute without further action. A Fidelity spokesperson confirmed that the parties had "resolved their differences."
Michael Maeker, a 24-year veteran at Fidelity, claimed in his lawsuit that the firm pressured advisors to move clients from low-fee investments into higher-fee-managed money products that benefited Fidelity. He filed the suit in May in the U.S. District Court in Dallas, alleging that those practices violated the SEC's Regulation Best Interest. Maeker also argued that Fidelity terminated his employment in December 2022 as retaliation for raising internal concerns about these actions.
Fidelity denied Maeker's allegations, asserting that his termination was due to "deceptive misconduct." According to Fidelity, Maeker sent financial planning reports to clients that were based on unverified information, putting clients at risk.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
Tags: eccleston, eccleston law