November 14, 2011 – A nationwide shareholder derivative and class action suit have been filed by the class action attorneys from Levy Konigsberg LLP and Szaferman, Lakind, Blumstein & Blader, P.C., on behalf of shareholders suing The AXA Group over excessive and unreasonable investment management fees.
A NATIONWIDE SHAREHOLDER DERIVATIVE AND CLASS ACTION SUIT HAS BEEN FILED BY THE CLASS ACTION ATTORNEYS FROM LEVY KONIGSBERG LLP AND SZAFERMAN, LAKIND, BLUMSTEIN & BLADER, P.C., ON BEHALF OF SHAREHOLDERS SUING THE AXA GROUP OVER EXCESSIVE AND UNREASONABLE INVESTMENT MANAGEMENT FEES.
NEW YORK, New York, November 14, 2011 – Class action attorneys at Levy Konigsberg LLP (“LK”), along with the law firm of Szaferman, Lakind, Blumstein & Blader, P.C., have filed a nationwide derivative and class action lawsuit against AXA Equitable Life Insurance Company and AXA Equitable Funds Management Group, LLC (“AXA”), on behalf of one named plaintiff who is invested in the EQ/Common Stock Index Portfolio, the EQ/Equity Growth PLUS Portfolio, the EQ/Equity 500 Index Portfolio, the EQ/Large Cap Value PLUS Portfolio, the EQ/Global Multi-Sector Equity Portfolio, the EQ/Mid Cap Value PLUS Portfolio, the EQ/GAMCO Small Company Value Portfolio and the EQ/Intermediate Government Bond Index Portfolio (“AXA Funds”) for:
- Breach of AXA’s fiduciary duties under Section 36(b) of the Investment Company Act of 1940 (“ICA”) for collecting excessive investment management fees;
- Violation of Section 26(f) of the ICA for charging unreasonable investment management fees to investors who invested in the AXA Funds in connection with an AXA Variable Annuity Contract; and
- Unjust enrichment by AXA for their receipt of unreasonable and excessive investment management fees.
The initial complaint was filed in the U.S. District Court for the District of New Jersey on July 21, 2011. The amended complaint was filed on November 4, 2011.
The amended complaint alleges that AXA’s investment management fees are a breach of its fiduciary duty under Section 36(b) of the ICA because AXA charges fees to the AXA Funds for investment management services that AXA either does not provide or that provide no benefit for the mutual fund shareholders.
The complaint further alleges that AXA charged fees to the named plaintiff, and other AXA Fund investors in connection with investments in the AXA Funds through an AXA Variable Annuity Contract that were unreasonable in relation to the services rendered, expenses incurred and risks assumed by AXA in violation of Section 26(f) of the ICA.
The complaint also alleges that AXA’s receipt of the excessive and unreasonable investment management fees paid by the named plaintiff, and other investors in the AXA Funds, resulted in AXA being unjustly enriched.
According to the complaint, because of the excessive and unreasonable investment management fees that AXA charged and received in connection with the named plaintiff’s (and other investors) investments in the AXA Funds, and AXA’s breach of its fiduciary duties, plaintiff, and all other investors in the AXA Funds, have suffered damages as a result thereof. The named plaintiff, on behalf of the AXA Funds shareholders, seek recession of all agreements and restitution of the excessive and unreasonable investment management fees paid to AXA.
Moshe Maimon, the class action attorney handling the case at LK, estimates that there could be thousands of AXA mutual fund shareholders who fell victim to AXA’s actions.
To identify and get in touch with potential members in this shareholder derivative and class action lawsuit, LK has designated a 24/7 hot line at 1-800-988-8005.