BOSTON, March 19 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
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
Fidelity was accused of breaching its fiduciary duty for its
work on a retirement plan for ABB Inc, a unit of ABB Ltd
(Reporting by Tim McLaughlin; Editing by Jan Paschal)