Employees Sue The Hartford Over Retirement-Plan Stock Losses

With all its troubles, The Hartford is now facing a barrage of litigation from its own employees, who have lost hundreds of millions of dollars in their retirement savings plan by investing in the company's ... Read more
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Angry Voter

Rocky Hill, CT

#1 Nov 13, 2008
You would think a company who offeres retirement solutions would know how to coach it's own employees on asset allocation and diversification. You would also think they would know that the rule is to have no more than 20% of a 401(k) invested into company stock. You would think they would know how to manage their own capital reserves like and insurance company and not a hedge fund.
Simzbury

Windsor, CT

#2 Nov 13, 2008
The Hartford 401K plan restricts employees from investing more than 10% in the Stock fund. Get your facts straight Angry Voter.
Mike M

Woodbridge, CT

#3 Nov 13, 2008
I agree with Simzbury! As a financial advisor and one who utilizes the Hartford for various products, I am quite positive, The Hartford does more than most employers to educate their employees on asset allocation and diversification. While I cringe at the severity of Hartford's stock decline, people are greedy and will look for deep pockets to fill their stupidity. We saw this at Enron and other places. I don't applaud corporate shenanigans, but the stock was at $85 and now is at $10. When do individuals come to the table to pull the trigger. Too many times, investors can't pull the trigger because they don't want to believe they are wrong and watch investments go into the tank and then are too eager to hold the company at fault. Yes, the Hartford has issues, but a 75 point decline should cause anyone to take action way before the bottom.
disgusted

Waterbury, CT

#4 Nov 14, 2008
A lot of major companies advise against investing in your own companies stock. You do have a false sense of comfort because you think you know whats going on with the company, and is most cases the employees are the last to know trouble is around the corner. If only 10% can be invested then the loss to the employees shouldn't crush them, of course no one wants to lose money but the stock market is a risk and a gamble.
Dona Young

AOL

#5 Nov 14, 2008
The Gubmint has to do something to help these people. Maybe a bailout? Talk about inept management
jerry

Hartford, CT

#6 Nov 14, 2008
boo hoo,,,, YOU are dumb enough to keep so much of your company stock in your 401K, DID you not learn anything for ENRON.!
hold on

Glastonbury, CT

#7 Nov 14, 2008
the ceo created a fortune for himself off the company stock via options and grants. its certainly worth investigating. good for the employees. alot of options were excersized in this year as the stock declined. the cfo suddenly left mid year. wonder what they knew. its worth a look.
Mr Common Sense

United States

#8 Nov 14, 2008
Now is a good time to invest. It's got nowhere to go but up.
HIG employee

Hartford, CT

#9 Nov 14, 2008
No one is required to invest in company stock in the 401K plan. The company does not provide matching funds in company stock either. There is no good reason for anyone to have company stock in their 401K plan. People are either lazy or ignorant (or both) when they decide to elect their company stock for their 401K. If they diddn't learn from Enron, MCI etc they have no one else to blame.
Interested Observer

Boston, MA

#10 Nov 14, 2008
Although I am not an employee or retiree, I, too, invested in their mutual funds. I lost money and now I want it back - it's all their fault! I am an innocent victim - just like the poor sub-prime mortgage borrowers. The Hartford should bail me out pronto.

I'm also very stessed out and deserve money for that suffering too. And my cat is not eating well - big vet bills looming. Matter of fact, I was so stressed out, I forget to put out the fire in the fireplace, the house caught fire and burned to the ground. I'm adding that to the tab too.

And now, GM is going bankrupt and I'll have trouble finding a mechanic and parts. This is The Hartford's fault too, since they probably saw that coming and didn't tell me. I want a new car. And, of course, more suffering money.

Life is hard and full of questions. It's The Hartfod's fault for not giving me all the answers.
Mr gump

Jersey City, NJ

#12 Nov 14, 2008
If people go to the casino and lose money, can they sue?
Mr Common Sense

United States

#13 Nov 14, 2008
Zonker wrote:
<quoted text>
A truly ridiculous statement!! There's an old saw about catching falling knives. Moral is, you can get badly hurt.
It can fall to zero. In this environment, with The Hartford's losses, that is possible.
This is a stock to avoid.
Okay, maybe I generalized, but look how low the stock was. I don't know what the price is today. At it's lowest it was a bargain if you have some money to invest. It will either go up, or the company will go bankrupt and close. Buying stock is never a guarantee, but if The Hartford does continue to exist then it will go up.
Voice of Reason

Hartford, CT

#14 Nov 14, 2008
Interested Observer wrote:
I, too, invested in their mutual funds. I lost money and now I want it back - it's all their fault! I am an innocent victim - just like the poor sub-prime mortgage borrowers.
Your comments are completely ignorant! If you were invested ANYWHERE in the past month you lost $. No one owes you anything - if you read what you signed when you bought the funds you'd know that they "are not guaranteed and may lose value." If you want a guarantee then go buy a bond or CD and settle for 3% interest! Additionally, I disagree that sub-prime mortgage borrowers are innocent victims. They are people who bought more than they could afford. Yep - the banks were willing to help people get into debt, but as an individual you have to know your own limits. If you don't then cut up your credit cards, live in a cardboard box and keep cash in your mattress.
Irritated by ignorance

Hartford, CT

#15 Nov 14, 2008
This lawsuit is foolish... I hope the actual complaint is worded more competantly than this article makes it sound since this makes it sound like the people involved in the class action are upset that Hartford did not give them enough information to participate in insider trading! "employees weren't warned about The Hartford's" investment practices... I work at Hartford. I lost money too - everyone did - in every investment choice, not just our stock. But I am taking personal responsibility for it since I am the only one allowed to choose my allocations and I am not required to own HIG - in fact, we cannot have more than 10% of my 401k in HIG! I feel that my job is stock enough in this company doing well and don't feel the need to put more into HIG. If you lost money invested in a company you did not work for would you sue them too?
Come on people

Hartford, CT

#16 Nov 14, 2008
hold on wrote:
the ceo created a fortune for himself off the company stock via options and grants.
Regardless of what price he exercized his options at, I guarantee you it was more than $10 - which means he lost money too. Get a clue!!!
Sick-O-Congress Blowhards

Hartford, CT

#17 Nov 14, 2008
Interested Observer wrote:
Although I am not an employee or retiree, I, too, invested in their mutual funds. I lost money and now I want it back - it's all their fault! I am an innocent victim - just like the poor sub-prime mortgage borrowers. The Hartford should bail me out pronto.
I'm also very stessed out and deserve money for that suffering too. And my cat is not eating well - big vet bills looming. Matter of fact, I was so stressed out, I forget to put out the fire in the fireplace, the house caught fire and burned to the ground. I'm adding that to the tab too.
And now, GM is going bankrupt and I'll have trouble finding a mechanic and parts. This is The Hartford's fault too, since they probably saw that coming and didn't tell me. I want a new car. And, of course, more suffering money.
Life is hard and full of questions. It's The Hartfod's fault for not giving me all the answers.
Don't the readers realize that the above commenter is making a joke? I think it is funny and typical of the losers who try to blame everyone but themselves. The Hartford changed the rules last year or the year before (when the price was well into the $80's) that an employee could put no more than 10% into company stock. They also recommended each person consult with an advisor to determine their best retirement needs. If people were greedy or stupid, that is their own fault, not The Hartford's.
Mr Common Sense

United States

#18 Nov 14, 2008
Voice of Reason wrote:
<quoted text>
Your comments are completely ignorant! If you were invested ANYWHERE in the past month you lost $. No one owes you anything - if you read what you signed when you bought the funds you'd know that they "are not guaranteed and may lose value." If you want a guarantee then go buy a bond or CD and settle for 3% interest! Additionally, I disagree that sub-prime mortgage borrowers are innocent victims. They are people who bought more than they could afford. Yep - the banks were willing to help people get into debt, but as an individual you have to know your own limits. If you don't then cut up your credit cards, live in a cardboard box and keep cash in your mattress.
I'm pretty sure they were being sarcastic.

“In Dodd we cannot trust.”

Since: Nov 07

Rural Connecticut

#19 Nov 14, 2008
Voice of Reason wrote:
<quoted text>
Your comments are completely ignorant! If you were invested ANYWHERE in the past month you lost $. No one owes you anything - if you read what you signed when you bought the funds you'd know that they "are not guaranteed and may lose value." If you want a guarantee then go buy a bond or CD and settle for 3% interest! Additionally, I disagree that sub-prime mortgage borrowers are innocent victims. They are people who bought more than they could afford. Yep - the banks were willing to help people get into debt, but as an individual you have to know your own limits. If you don't then cut up your credit cards, live in a cardboard box and keep cash in your mattress.
Sarcasm is lost on you, isn't it?
vulture plaintiff bar

Bloomfield, CT

#20 Nov 14, 2008
Of course there are sleazeball plaintiff attorneys trying to line their pockets on the misfortune and greed of those affected by the stock price decline. Even in a case that they can't win they'll convince the hapless investors that they'll receive a windfall settlement with no effort on their part other than being a plaintiff. This category of lawsuit should be strictly limited to those cases where it is clear there is some malfeasance on the part of the company involved. There will be no evidence of malfeasance in this case, but at least the plaintiff's bar can generate some billable hours for its bloated legal staff through endless discovery. A disgrace.
penguin

Hartford, CT

#21 Nov 14, 2008
Angry Voter wrote:
You would think a company who offeres retirement solutions would know how to coach it's own employees on asset allocation and diversification. You would also think they would know that the rule is to have no more than 20% of a 401(k) invested into company stock. You would think they would know how to manage their own capital reserves like and insurance company and not a hedge fund.
The Hartford has a cap of 10$% that you can put into your 401k. You have daily access to your account and can move to stable value any time you like.

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