Article ID: 65baed5034fa317968230f26bddd935289c8660def2f6b63f00fd73e3aeb0cdc
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Fidelity beats lawsuit over fees in $439 billion money market fund - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Fidelity beats lawsuit over fees in $439 billion money market fund D&O , E&O Mar 25, 2026 (Reuters) – A federal judge dismissed a lawsuit on Wednesday accusing mutual fund giant Fidelity of cheating many investors in its $439.1 billion Fidelity Government Money Market Fund by keeping them in higher-cost share classes than they were eligible for. U.S. District Judge Margaret Garnett in Manhattan rejected claims that Fidelity unjustly enriched itself, and the fund’s board and investment managers breached their fiduciary duties, by failing to automatically convert “retail class” shares into lower-cost “premium class” shares once balances hit $100,000 in non-retirement accounts or $10,000 in retirement accounts. Retail investors said Boston-based Fidelity shortchanged them out of millions of dollars by continuing to charge fees and expenses of up to 0.42% on their investments, rather than up to 0.32% on the premium class shares. Judge Garnett, however, said Fidelity fully disclosed the economic consequences of converting or not converting shares. She also said investors neither showed that Fidelity’s disclosures regarding conversions were misleading nor disputed they could readily convert their shares on their own. “Against this backdrop, it was not ‘outside the bounds of reason’ for defendants to design the fund without an automatic conversion feature,” the judge said, quoting a legal standard to establish gross negligence. Lawyers for the investors did not immediately respond to requests for comment. Fidelity and its lawyers did not immediately respond to similar requests. Judge Garnett distinguished the case from litigation accusing Vanguard of saddling retail investors in its target-date funds with big tax bills when it switched institutional investors into lower-cost shares. She said that switch was “unexpected,” and gave retail investors no say or notice. Vanguard settled those cases last year for an estimated $158 million, investors’ lawyers said. According to Fidelity’s website, $406.4 billion of the money market fund’s $439.1 billion of assets as of Feb. 28 were in the retail share class. Fidelity had $7.1 trillion of assets under management at the end of 2025. 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