Over the years, one of the established financial planning and investment organizations, Ameriprise Financial, has been a party in several cases. These cases normally arise from the misbehavior on the part of the corporation and its financial advisors, along with breaches of their fiduciary responsibility. Due to the intricacy of financial planning, it is very important that customers understand the possible dangers and legal ramifications of doing business with firms like Ameriprise.

One of the most well-known cases involved a class action lawsuit naming Ameriprise and an advisor as defendants with multiple counts of fraud. These were actions that led to their clients sustaining significant financial losses; one account lost more than $900,000 in value. Ameriprise has also faced disciplinary disclosures with the SEC, coupled with a $5 million settlement payment to settle allegations stemming from variable annuity sales.

While neither of these cases speaks to the entirety of Ameriprise’s business, both should be a consideration for any client weighing the reputation and reliability of any financial planning firm. Informed by previous incidents, consumers can better choose a financial advisor best prepared to manage their wealth and safeguard their futures.

An Overview of Lawsuits at Ameriprise

Over the years, Ameriprise Financial, one of the well-acknowledged service providers in the field of wealth management and professional financial planning, has faced several class action complaints. In addition to providing a background of some of the past court actions, the following section focuses on the most recent litigation and allegations against the firm.

Current Legal Actions

The class-action complaint accused Ameriprise and one of its advisors of various fraudulent acts that included churning clients’ accounts, making inappropriate investments, and charging exorbitant fees. According to the plaintiff, Donelson, during his time with the firm, his account lost more than $900,000 in value, which he attributed to wrongdoing.

In addition, a dispute between Ameriprise and its ex-advisor also went to the US Supreme Court. SIFMA filed an amicus brief in support of Ameriprise in that litigation. Details of this case, and consequences thereof, have not yet been disclosed.

Statements of claim

The case of Gary and Mary Gregg against Ameriprise Financial and its financial advisor, Robert Kovalchik, was filed in 1999; the latter were accused of having欺騙d the former into selling them insurance policies. The trial court has thus filed a case against Ameriprise Financial and others as it found Kovalchik had sold the policies using false sales practices.

As alleged in this case, on or about 2022, Ameriprise Financial Services, LLC and the second defendant perpetrated theft, fraud, and forgery. The claims herein arose under Laws of Connecticut state and federal RICO.

Misconduct by Financial Advisors

In companies like Ameriprise, the financial advisors have a commitment to make sure that the clients get the best service. Across the years, some Ameriprise consultants have been accused of impropriety on many different occasions. Common misbehaviors coming from a financial advisor will include unauthorized transactions, excessive fees and commissions, breaches of fiduciary duty, among others.

Fiduciary Duty Breach

It is the fiduciary duty of the financial consultant to act concerning the best interest of the clients. If an adviser puts their interest or that of their company before the client’s interest, then they have breached their fiduciary duty and can make the customer incur a big loss. Some Ameriprise financial advisors in the past had faced criticism and accusation of not being able to serve their fiduciary duties.

Unauthorized Exchanges

A transaction or trading activity carried out by a financial adviser without the prior knowledge or permission of the client is termed an unauthorized transaction. Such transactions may result in a loss in the client’s portfolio and financial damage too. The financial advisers employed at Ameriprise have been at times fined for conducting illicit activity. The customers may check the disciplinary history as well as past misconduct of their respective financial advisors from the FINRA BrokerCheck database.

Excessive Commissions and Fees

Excessive fees and commissions refer to when a financial advisor recommends or conducts investment strategies in a way to increase their fees or commissions, or those of their firm, without regard to the best interest of the client. Ameriprise has been, from time to time, the subject of various complaints and government sanctions for failure to supervise the activities of its agents, whereby excessive fees and commissions have been charged.

It shall be the customer’s responsibility to know and keep track of his accounts and ensure that their investments are appropriate for their long-run financial goals by understanding the risks that may be involved when working with a financial advisor. If they believe that a financial advisor has done something wrong, they should make it known to the firm right away and also file a FINRA arbitration claim, if warranted.

Exchange and Securities Violations

With respect to the exchange as well as securities fraud, Ameriprise Financial Services has been a defendant in several class-action lawsuits, as well as an object of various regulatory actions. There have been  two major cases concerning the sale and offering of municipal bonds to qualified institutional buyers.

Transactions involving Municipal Bonds

Ameriprise Financial Services settled a complaint filed by the SEC that it had failed to prevent its representatives from stealing money from retail investors. For its various violations, the firm agreed to a $4.5 million fine. In no way could this case have underlined the important role of the securities industry in making sure the assets of investors are adequately protected.