U.S. appeals court: Fidelity did not overcharge on float fees
BOSTON, March 19
BOSTON, March 19 (Reuters) - Fidelity Investments did not improperly use money earned in overnight accounts while overseeing a retirement plan for a U.S.-based unit of Swiss manufacturer ABB Ltd., according to a U.S. appeals court decision released on Wednesday.
The U.S. Court of Appeals for the Eighth Circuit reversed part of a lower court decision that had ordered Fidelity to pay $1.7 million for collecting income on uncashed checks held overnight.
Fidelity, based in Boston, is the No. 2 U.S. mutual fund company and the No. 1 administrator of 401(k) retirement plans.
The appeals court also said Fidelity was not liable for its share of $13.4 million in attorney and court fees awarded in 2012 by the U.S. District Court for the Western District of Missouri.
Fidelity was accused of breaching its fiduciary duty for its work on a retirement plan for ABB Inc, a unit of ABB Ltd .