Fidelity Investments and former advisor Michael Maeker have reached a resolution in a lawsuit over allegations that the company terminated him for raising concerns about pressure to recommend high-fee investment products.
Both parties agreed to dismiss the case this month, according to court filings. Statements from Fidelity and Maeker’s attorney, Rogge Dunn, confirm that the dispute has been settled.
Fidelity, one of the largest asset and wealth management firms in the U.S., manages more than $15 trillion in assets as of September 30. The company serves millions of retail investors nationwide.
Maeker, who worked for Fidelity in Dallas, was employed by the firm from 1998 until 2022, according to FINRA's BrokerCheck database. Fidelity terminated Maeker in December 2022, citing allegations of misrepresenting client interactions and improper use of financial planning tools. Maeker denied these claims, maintaining that his job performance and annual reviews during his tenure at Fidelity were exemplary, as reflected in his lawsuit. His BrokerCheck record shows no client complaints.
The lawsuit, filed in May in a Texas federal court, claimed that Fidelity dismissed Maeker in retaliation for concerns he raised about internal pressures to direct clients toward high-fee investment products. According to the lawsuit, these products generated more revenue for Fidelity but were unsuitable or not in the best interest of investors.
The complaint alleged that Maeker’s branch manager routinely urged him to recommend high-fee investments, regardless of client suitability. Fidelity allegedly classified investment options into three tiers based on fee structures, compensating advisors more generously for steering assets into the highest-fee tier.
Maeker claimed that he reported potential violations of the SEC’s Regulation Best Interest (Reg BI) and other securities laws through official channels within Fidelity. Instead of addressing these concerns, the lawsuit alleged, Fidelity retaliated by terminating Maeker’s employment to deter other financial advisors from speaking out. “Rather than disciplining executives and managers who violated Reg BI and other securities laws, Fidelity retaliated against Maeker to send a message to its financial advisors to remain silent,” the lawsuit stated.
Fidelity denied the allegations in its legal response, asserting that Maeker failed to confirm the accuracy of client information before sending financial planning reports. The company maintained that his branch manager had encouraged Maeker to improve client engagement and financial planning efforts, which he allegedly failed to do.
“In light of the severity of Maeker’s actions, Fidelity would have terminated his employment regardless of whether he had raised any complaints,” the company stated in its court filings.
