https://www.thinkadvisor.com/2024/08/06/tiaa-morningstar-accused-of-funneling-assets-to-proprietary-products/?amp=1
4 replies (most recent on top)
Just saw this today.
How many lawsuits and investigations are there at this time?
https://www.pionline.com/courts/university-retirement-plan-members-sue-tiaa-morningstar-over-investment-advice-tool
So, this looks like a class action based on the allegations of the latest SEC whistleblower complaint that was described in the NBC News article. Morningstar and TIAA may have good reasons for why the software does what it does, but if there is also evidence that they did it primarily to bolster investment into two specific products and increase their revenue rather than for rock solid reasons of portfolio construction and risk optimization...it could be another "lack of disclosure" black eye.
It will be difficult for TIAA to defend all of these class action lawsuits and fines. It is hard pill to take, but the best course of action is removing the execs in charge asap and settling with the plaintiffs. We're dead if we try to fight this. Same with trying to point the blame to Morningstar. Morningstar will sue us so quick for defaming their name. (i.e. just look at the Fox News vs. Dominion lawsuit for the election software).
I would say fight it if we had a strong comms team, but unfortunately all the good comms people were either laid off or fired by our CMO.
What number is this. Lawsuit 30 for this year.