January 17, 2019 / 10:37 PM / 5 months ago

Judge tosses racketeering lawsuit against Morningstar, Prudential

A federal judge has dismissed a racketeering lawsuit accusing Morningstar and Prudential of steering investors into retirement funds that paid high fees to Prudential, ruling that the alleged conduct did not constitute racketeering.

In a decision on Wednesday, U.S. District Judge Virginia Kendall in Chicago said a racketeering claim has to show that defendants participated in an unlawful enterprise separate from their own business affairs. In this case, investors failed to show that defendants did anything more than create an investment program to increase their profits, which is not “inherently nefarious,” Kendall said.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/2sA3QVn

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