NEW YORK, Oct. 22, 2004 (PRIMEZONE) -- The New York law firm of Wechsler Harwood LLP today announced that it has commenced an investigation against The Hartford Financial Services Group, Inc. ("Hartford Financial" or the "Company") (NYSE:HIG) and Hartford Fire Insurance Company, a wholly-owned subsidiary of Hartford Financial, for violations of the Employee Retirement Income Security Act of 1974 ("ERISA") in relation to its handling of investments in the Company's employee retirement benefit plan (the "Plan").
In particular, the investigation focuses on whether the Company and certain Plan administrators breached their fiduciary duties by: (a) negligently misrepresenting and negligently failing to disclose material facts to the Plan and the Plan participants in connection with the management of the Plan's assets and (b) negligently permitting the Plan to purchase and hold Hartford Financial stock when it was imprudent to do so.
The material facts being investigated include, but are not limited to allegations that Hartford Financial purportedly had allowed Plan participants to purchase and/or hold the Company's stock or funds which included Company stock while knowing that the value of the Company's shares was inflated. More specifically, as has been divulged by the on-going investigation of New York State Attorney General Elliot Spitzer, Hartford Financial and other insurance companies allegedly have been engaged in "kickback" schemes and "bid rigging" in connection with its insurance brokerage business. On October 14, 2004, it was disclosed that Hartford Financial allegedly had been engaging in such misconduct. Shares of Hartford Financial declined precipitously in the wake of this disclosure, losing $56 per share, or nearly 10% in value.
Subsequently, a number of class actions were filed in the United States District Court for the District of Connecticut against the Company and certain of its officers and directors alleging violations Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are or were a Plan participant and hold shares of Hartford Financial stock in your retirement benefit plan and want to discuss this investigation with an attorney or have any questions concerning this notice, your legal rights or any matter within our expertise, you may e-mail or call Wechsler Harwood who will, without obligation or cost to you, attempt to answer your questions. Wechsler Harwood has extensive experience in both federal securities and ERISA litigation and has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter.