Comcast Corp. NASD: CMCSA has been accused of securities fraud. If you are a current or former employee or are a member of any of Comcast Corp. investment plans or profit sharing retirement plans you may be included in this possible Comcast Corp. 401K or Employee Retirement Income Security Act (ERISA) class action. If you purchased or held Comcast Corp. stock in one of those plans during the periods February 1, 2007 to December 4, 2007, you may have a claim.
On October 25, 2007, Comcast Corporation ("Comcast") announced its financial results for the third quarter of 2007, the period ended September 30, 2007. The Company reported that third-quarter net income fell 54% from the prior year and that it was experiencing slowing subscriber growth.
Then, on December 4, 2007, Comcast issued a press release announcing that it was cutting its 2007 user growth forecast of 6.5 million revenue generating units ("RGUs") to 6 million RGUs and that its revenue and cash flow growth projections would fall short of expectations. As a result, the value of Comcast stock owned through the Comcast Retirement Investment Plan (the "Plan"), has fallen dramatically. Comcast and other administrators of the Plan may have breached their ERISA-mandated fiduciary duties of loyalty and prudence to participants and beneficiaries of the Plan. A breach may have occurred if the fiduciaries failed to manage the assets of the Plan prudently and loyally by investing the assets in Company stock when it was no longer a prudent investment for participants' retirement savings.
Under ERISA, Comcast Corp. employees can file a lawsuit against the company for putting stock options at risk. Comcast Corp. employees have a claim if they can prove their employer violated its fiduciary duty to its employees. Fiduciary duty refers to a company's responsibility to the people who invest in it. If an employer puts the company's interest ahead of the investors', it has broken its fiduciary duty. A fiduciary is a person that exercises discretion over the management of plan assets or exercises discretionary control over the administration of the plan.
ERISA is a federal law that sets minimum standards for pension and health plans set up by private businesses. ERISA was designed to protect people who participate in employee benefit plans, including employees with stock options in a company. Stock options are a form of compensation in which employees are given the opportunity to purchase shares of the company stock at a certain price.
In spite of tripling its profit in the first quarter of this year, a dramatic reversal of fortune by the end of 2007 at Comcast Corp. has prompted concern for members of Comcast investment plans or profit sharing retirement plans who may have suffered irreversible losses.
On October 25, 2007, Comcast Corporation ("Comcast") announced its financial results for the third quarter of 2007, the period ended September 30, 2007. The Company reported that third-quarter net income fell 54% from the prior year and that it was experiencing slowing subscriber growth.
Then, on December 4, 2007, Comcast issued a press release announcing that it was cutting its 2007 user growth forecast of 6.5 million revenue generating units ("RGUs") to 6 million RGUs and that its revenue and cash flow growth projections would fall short of expectations. As a result, the value of Comcast stock owned through the Comcast Retirement Investment Plan (the "Plan"), has fallen dramatically. Comcast and other administrators of the Plan may have breached their ERISA-mandated fiduciary duties of loyalty and prudence to participants and beneficiaries of the Plan. A breach may have occurred if the fiduciaries failed to manage the assets of the Plan prudently and loyally by investing the assets in Company stock when it was no longer a prudent investment for participants' retirement savings.
Under ERISA, Comcast Corp. employees can file a lawsuit against the company for putting stock options at risk. Comcast Corp. employees have a claim if they can prove their employer violated its fiduciary duty to its employees. Fiduciary duty refers to a company's responsibility to the people who invest in it. If an employer puts the company's interest ahead of the investors', it has broken its fiduciary duty. A fiduciary is a person that exercises discretion over the management of plan assets or exercises discretionary control over the administration of the plan.
ERISA is a federal law that sets minimum standards for pension and health plans set up by private businesses. ERISA was designed to protect people who participate in employee benefit plans, including employees with stock options in a company. Stock options are a form of compensation in which employees are given the opportunity to purchase shares of the company stock at a certain price.
Comcast Corp. Articles
Comcast Alleged to have Breached Fiduciary Duty with 401(k) InvestorsIn spite of tripling its profit in the first quarter of this year, a dramatic reversal of fortune by the end of 2007 at Comcast Corp. has prompted concern for members of Comcast investment plans or profit sharing retirement plans who may have suffered irreversible losses.
