American Express Company former employee ERISA lawsuit

PRLog (Press Release) - Mar 09, 2009 -
A lawsuit on behalf of participants in the American Express Retirement Savings Plan at any time from April 19, 2007 to present concerning alleged violations of the Employee Retirement Income Security Act of 1974 (“ERISA”) has been filed.

If you are former employee of American Express and are a participant in the American Express Retirement Savings Plan at any time from April 19, 2007 to present and held American Express stock (NYSE:AXP) in the plan, you should contact the Shareholders Foundation, Inc. immediately!

Email: mail@shareholdersfoundation.com

or Call us

Phone: +1-(858)-779-1554

According to the complaint the lawsuit alleges that American Express (NYSE:AXP ) and other administrators of the American Express Retirement Savings Plan 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 American Express Retirement Savings Plan prudently and loyally by investing the assets in American Express (NYSE:AXP ) stock when it was no longer a prudent investment for participants’ retirement savings, so the complaint. The plaintiff alleges that American Express issued between April 19, 2007 and February 04, 2009a series of material misrepresentations and omissions regarding the affect that a weakening economy and declines in consumer credit card spending had and would continue to have on its financial business. In fact American Express was susceptible to huge financial losses because it was heavily dependent upon revenue from consumer credit card spending during a time when the economy was weakening and nationwide consumer credit card spending was sharply declining, but the plans fiduciaries, so the plaintiff, knew or should have known that and as a result this made the plan’s continued investment in American Express stock imprudent.
American Express Company also has been accused of securities fraud. On Friday, February 20, 2009 an investor filed a proposed securities class action lawsuit in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who purchased or otherwise acquired the securities of American Express between March 1, 2007 and November 12, 2008, over alleged Federal Securities Laws violations by American Express Company and certain of the Company's executive officers. According to the complaint the plaintiff alleges that American Express Company and certain of its executive officers violated federal securities laws. The Complaint alleges that between March 1, 2007 and November 12, 2008 American Express Company and certain of its executive officers knew or recklessly disregarded that their public statements concerning the its business, operations, and prospects were materially false and misleading. Specifically, the plaintiff alleges that American Express Company public statements, among other things, misled investors by falsely representing American Express's exposure to the riskiest credit card holders and failed to disclose the its increasing reliance on riskier credit card programs.
Then on November 10, 2008, American Express obtained Federal Reserve System approval to convert to a bank holding company, making it eligible for government help under the Troubled Assets Relief Program . The  American Express bank holding company could qualify for up to $3.5 billion of the Treasury Department's money-a capital infusion required to save the Company from its riskier endeavors and as a result of the its shift to risky card issuances, American Express stock (NYSE: AXP) has plunged approximately 65% since March 2007, so the lawsuit.

If you are a participant in the American Express Retirement Savings Plan at any time from April 19, 2007 to present and held American Express stock (NYSE:AXP) in the plan, you should contact the Shareholders Foundation, Inc. immediately!

Email: mail@shareholdersfoundation.com

or Call us

Phone: +1-(858)-779-1554

or send us your information by mail /facsimile:

Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -

92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
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