Notice to AmEx Employees: Zamansky LLC Investigates The American Express Retirement Savings Plan for Possible ERISA Violations
August 14 2015 - 5:30PM
Business Wire
Zamansky LLC announces its investigation of the American Express
Co. (NYSE:AXP)(“Amex”) Retirement Savings Plan (the “Plan”) for
possible violations of the federal Employment Retirement Securities
Act (“ERISA”). ERISA imposes fiduciary duties to prudently manage
and invest the assets of the Plan. These duties were potentially
violated by AmEx’s continued offering of its company stock while it
allegedly knew that the stock price was artificially inflated.
On July 30, 2015, a class action lawsuit was filed against Amex
in the U.S. District Court, Southern District of New York, No.
15-CV-5999, alleging securities fraud. The complaint alleges that
from Oct. 16, 2014 and Feb. 11, 2015, Amex made material
misrepresentations to investors about the status of the company’s
negotiations with Costco over the renewal or lapse of their
co-branding agreement. Amex failed to disclose or warn investors
that a loss of their partnership -- which was imminent, would have
significant financial impact to investors.
When Amex announced that it lost the deal with Costo and its
partnership would expire, the company’s stock price suffered a
nine-percent drop. According to the complaint, Wall Street analysts
lowered future price targets acknowledging the long-term impact to
Amex’s future profits.
According to employee stock fraud attorney, Jake Zamansky,
Amex’s existing and former employees who purchased and held company
stock through the Plan since at least October 16, 2014, have
suffered damage and losses to their retirement savings. The
allegations about securities fraud by Amex in its public
disclosures raise serious issues for Amex Plan participants over
the prudent monitoring and oversight of the Plan under ERISA for
artificial inflation of the stock price, he states.
What Amex Employees or Former Employees Can Do
If you are an existing or former Amex employee who purchased or
held Amex stock through the Retirement Savings Plan, please contact
our firm for an evaluation of your rights. You can contact Jake
Zamansky by telephone at (212) 742-1414 or by email at
jake@zamansky.com.
About Zamansky LLC
Zamansky LLC is a leading stock law firm specializing in
securities fraud, ERISA and employment class actions. We are
investment fraud attorneys who represent both individual and
institutional investors. Our practice is nationally recognized for
our ability to aggressively prosecute cases and recover investment
losses.
To learn more about Zamansky LLC, please visit our website,
http://www.zamansky.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20150814005585/en/
Zamansky LLCJake Zamansky,
212-742-1414jake(at)zamansky(dot)com
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