Fisher Investments Has Seen Previous Arbitrations

A recent arbitration decision against Fisher Investments is reportedly not the first time JAMS arbitration has heard Fisher Investments complaints. At least two other actions concerning Fisher Investments performance have been filed against the firm in recent years, alleging the company put too much of an investor's account in equities, which resulted in massive losses when the market collapsed.

Fisher Investments Has Seen Previous Arbitrations

In 2009, at least two investor claims were reportedly filed against Fisher Investments alleging breach of fiduciary duty. One was a lawsuit, filed by investor Maurine Ford, who says that Fisher Investments purchased her assets in 2008; prior to that, her living trust was managed by Lighthouse Capital Management LLP. According to the plaintiff, when the account was transferred to Fisher Investments, it was 27 percent cash, 41 percent equities and 32 percent fixed income. Ford alleges once Fisher took over the account, it recommended reallocation so that it could be 100 percent invested in equities.

When the market collapsed, Ford reportedly lost a substantial amount from her living trust.

A second, similar action was an arbitration, filed in Georgia by Michelle and Brent Murphy, who allege Fisher Investments kept almost 100 percent of their investments in equities despite the collapse of the stock market. The couple's arbitration sought $1.2 million.

At the time the arbitrations were filed, Fisher Investments CEO Ken Fisher reportedly called the allegations nonsense.

But these concerns have been raised by investors before, according to a 2004 article in BusinessWeek (05/10/04). The article noted that the Securities & Exchange Commission conducted an inquiry into Fisher Investments—although that inquiry was ended without any enforcement action recommended. Fisher has denied any wrongdoing. In an e-mail to BusinessWeek, Fisher reportedly said that clients' portfolios may look similar but have been customized to each individual's objectives.

One former investor, H. Frank Rogers, filed an arbitration against Fisher Investments and won approximately $130,000. Rogers claimed that his retirement savings were put into stocks in May 2002, even though he requested a conservative investing strategy. Meanwhile, former employees reportedly told BusinessWeek that the firm provides minimal customization of portfolios. Rogers also filed a lawsuit against Fisher Investments seeking class-action status, but that lawsuit failed to be certified class action.

Despite some concerns about Fisher Investments, up to the 2004 BusinessWeek report, the firm faced only five legal actions in its 17 years, including the two filed by Rogers.

Fisher Investments Has Seen Previous Arbitrations

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