Ameriprise 2011 Annual Report Download - page 176

wrongdoing, and the government has confirmed that neither the Company nor any of its affiliated entities is a target of its
investigation into potential insider trading.
In October 2011, a putative class action lawsuit entitled Roger Krueger, et al. vs. Ameriprise Financial, et al. was filed in
the United States District Court for the District of Minnesota against the Company, certain of its present or former
employees and directors, as well as certain fiduciary committees on behalf of participants and beneficiaries of the
Ameriprise Financial 401(k) Plan. The alleged class period is from October 1, 2005, to the present. The action alleges that
Ameriprise breached fiduciary duties under ERISA by selecting and retaining primarily proprietary mutual funds with
allegedly poor performance histories, higher expenses relative to other investment options, and improper fees paid to
Ameriprise Financial, Inc. or its subsidiaries. The action also alleges that the Company breached fiduciary duties under
ERISA because it used its affiliate Ameriprise Trust Company as the Plan trustee and record-keeper and improperly reaped
profits from the sale of the record-keeping business to Wachovia Bank, N.A. Plaintiffs allege over $20 million in damages.
On January 17, 2012, all defendants filed a brief and other documents in support of their motion to dismiss the
complaint. Plaintiffs filed an amended complaint on February 7, 2012. An amended briefing and hearing schedule for the
motion to dismiss this amended complaint will be set by the court.
23. Related Party Transactions
The Company may engage in transactions in the ordinary course of business with significant shareholders or their
subsidiaries, between the Company and its directors and officers or with other companies whose directors or officers may
also serve as directors or officers for the Company or its subsidiaries. The Company carries out these transactions on
customary terms. The transactions have not had a material impact on the Company’s consolidated results of operations or
financial condition.
The Company’s executive officers and directors may have transactions with the Company or its subsidiaries involving
financial products and insurance services. All obligations arising from these transactions are in the ordinary course of the
Company’s business and are on the same terms in effect for comparable transactions with the general public. Such
obligations involve normal risks of collection and do not have features or terms that are unfavorable to the Company’s
subsidiaries.
24. Discontinued Operations
During the fourth quarter of 2011, the Company sold Securities America to Ladenburg Thalmann Financial Services, Inc.
for $150 million in cash and potential future payments if Securities America reaches certain financial criteria. The
components of income (loss) from discontinued operations, net of tax, were as follows for the years ended December 31:
2011 2010 2009
(in millions)
Total net revenues $ 382 $ 467 $ 412
Loss from discontinued operations $ (124) $ (40) $ —
Gain on sale 26 — —
Income tax benefit (38) (16) (1)
Income (loss) from discontinued operations, net of tax $ (60) $ (24) $ 1
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