A federal judge has dismissed a lawsuit that accused major investment advisory firms, such as Fidelity and Charles Schwab, of conspiring to exaggerate consumer costs and undermine competition. Stephen Greco's allegations of illegal collusion under U.S. antitrust statutes were rejected by U.S. District Judge LaShonda Hunt due to a lack of sufficient evidence. The lawsuit was deemed "lengthy, repetitive, and convoluted" by Judge Hunt, who criticized it for being "heavy on theories and labels and light on details."
The lawsuit was filed in 2022 by Greco, former national director of wealth management at Creative Planning and the CEO of Spotlight Asset Group. The complaint alleges a variety of violations, including antitrust breaches, fraud, and deceptive advertising. He alleged that Fidelity, Schwab, and other defendants engaged in practices that were intended to inhibit market competition and impair his business. With Schwab remarking that the complaint failed to present a plausible case, Fidelity and Schwab welcomed the dismissal. If Greco wishes to continue his litigation, the court has granted him until October 4 to submit an amended lawsuit.
