A federal court has dismissed a financial advisor's lawsuit against Fidelity Investments that accused the company of firing him for whistleblowing.
“The parties resolved their differences,” a Fidelity spokesperson told ThinkAdvisor by email Wednesday.
Michael Maeker, who worked at Fidelity for 24 years, had contended the company pressured him and other advisors to push clients from low-fee investments into ill-advised or unsuitable higher-fee managed money products that were more lucrative for Fidelity.
Maeker, in a lawsuit filed in U.S. District Court in Dallas in May, alleged Fidelity’s practices violated the Securities and Exchange Commission's Regulation Best Interest, and that the company fired him in December 2022 in retaliation for reporting the issue internally.
Fidelity denied the allegations, contending it fired Maeker because he "engaged in deceptive misconduct that put Fidelity's clients at risk" by sending financial planning reports to them based on unconfirmed information.
