Photo: AP

A new lawsuit against Fidelity Investment’s recordkeeping unit alleges the firm received kickbacks from Financial Engines and captured unreasonable fees on mutual funds through a brokerage window provided to participants in Delta Airlines’ 401(k) plan.

The suit alleges that Fidelity effectively serves as fiduciary to the plan because it both hired Financial Engines to provide advisory services to plan participants and negotiated the revenue-sharing terms with the Sunnyvale, California-based registered investment advisors. Financial Engines is not named as a party in the suit.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.

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