American Century Companies Inc., that slick Kansas City outfit peddling mutual funds and ETFs like they’re God’s gift to your retirement, isn’t just another faceless asset manager. No, this is a beast that’s been feasting on the dreams of ordinary folks while cutting shady deals in the shadows. Founded back in 1958 by James E. Stowers Jr., it’s got billions under management, but peel back the polished façade and you’ll find a cesspool of antitrust violations, fee-gouging, self-dealing, and ethical quagmires that would make even the most jaded chef spit out his bourbon.

These bastards have been caught with their hands in the cookie jar more times than I care to count, all while preaching fiduciary duty and long-term value. And get this – they’ve got holdings in Cummins Inc. (CMI), that engine giant, tucked into their portfolios like a dirty secret. We’re talking shares in ETFs such as the American Century Large Cap Equity and Focused Large Cap Value, clocking in at percentages that add up to millions in value. It’s yet another thread in the Cummins ecosystem, where companies seem to have their own twisted take on ethical behaviour, prioritising profits over people as if morality’s just another line item to slash. But enough foreplay – let’s carve into the meat of their scandals, raw and unfiltered.

The No-Poach Conspiracy: Screwing Over Your Own People

Picture this: a bunch of suited-up execs in boardrooms, sipping overpriced coffee, deciding that the little guy – yeah, their own employees – doesn’t deserve a fair shot at a better gig. That’s the essence of American Century’s antitrust fiasco, a real gut-punch to anyone who’s ever hustled for a raise. From 2014 to 2018, these pricks allegedly inked secret “no-poach” pacts with rivals like Mariner Wealth Advisors and Tortoise Capital Advisors. No soliciting, no recruiting, no hiring each other’s talent. Why? To keep wages down, mobility stifled, and the labour market rigged like a crooked poker game.

It’s the kind of anti-competitive bullshit that the Department of Justice sniffed out in 2021, leading to a non-prosecution deal where American Century coughed up $1.5 million to affected workers and promised to play nice. But that was just the appetizer. By 2025, class-action lawsuits exploded, with the firm and its co-conspirators settling for a whopping $25.5 million without admitting a damn thing. Outraged? You should be. This isn’t some abstract economic theory; it’s real people trapped in dead-end jobs, their ambitions crushed so execs can pad their bonuses. In an industry that’s already a shark tank, American Century turned it into a bloodbath, proving that loyalty’s a one-way street when billions are on the line.

Fee Gouging and Closet Indexing: Robbing Investors Blind

If there’s one thing that boils my blood, it’s when these financial wizards charge premium prices for subpar slop. American Century’s been slapped with lawsuits alleging excessive management fees that could top a billion bucks over a few years. Take the Baker v. American Century Investment Management case – plaintiffs claim the firm overcharged on major funds, hiding behind fancy cost accounting while raking in profits that would make a loan shark blush.

Then there’s the “closet indexing” scam, where they promise active management wizardry but deliver performance that’s basically tracking the market like a lazy shadow. The 2021 securities class action against the American Century Value Fund accused them of misrepresenting strategies in prospectuses, leading to inflated fees for what was essentially passive investing in drag. It’s deceptive, it’s greedy, and it’s a betrayal of the trust investors place in these gatekeepers. You hand over your hard-earned cash expecting expertise, and what do you get? A half-arsed mimicry act that lines their pockets while your portfolio flatlines. Bloody outrageous, if you ask me.

Self-Dealing in the 401(k) Swamp: Eating Their Own

Now, let’s talk about how American Century treats its own flock. In 2016, former employees hauled them into court under ERISA, claiming the firm stuffed its employee retirement plan with proprietary funds charging sky-high fees. Why bother with cheaper alternatives when you can prioritise your own profits? The lawsuit screamed “tainted self-interest,” arguing that fund selections and share classes were rigged to generate excess revenue for the company, not the workers saving for their golden years.

A federal judge tossed the claims in 2019, ruling no ERISA violation, but that doesn’t erase the stench. This was after the suit survived initial hurdles, exposing a potential conflict where the firm’s bottom line trumped fiduciary duty. And it’s not isolated – fast forward to 2025, and third-party suits like those against Discount Tire and Empower slam American Century’s target-date funds as underperformers in other plans. It’s a pattern: use your power to funnel money inward, screw the rank-and-file, and dare anyone to call you on it. In a world where retirement security’s already a crapshoot, this self-serving rot is unforgivable.

The PartyGaming Gamble: Betting Big on Shady Stakes

Dive deeper into the archives, and you’ll hit the late 2000s mess with PartyGaming Plc, a UK online poker outfit that American Century’s Ultra Fund poured millions into. Shareholders, led by Laura Seidl, sued in 2008, alleging negligence and breach of fiduciary duty after the stock tanked amid US indictments and the 2006 UIGEA law cracking down on online gambling. The fund lost $16 million divesting, ignoring red flags about the company’s dodgy US operations tied to racketeering and fraud.

Courts dismissed the claims by 2015, saying no proximate cause or breach proven, but the optics? Horrific. Here was a reputable firm dipping into the seedy underbelly of internet betting, risking investor money on a house of cards that collapsed spectacularly. It’s not just bad judgement; it’s a glimpse into how these outfits chase returns without a moral compass, flirting with illegality while everyday punters foot the bill. If that’s not a gritty tale of hubris and fallout, I don’t know what is.

The Stem Cell Storm: Playing God with Donor Dollars

Finally, we can’t ignore the cultural firestorm whipped up by founder James Stowers Jr. and his wife Virginia. Cancer survivors themselves, they dumped over $2 million into backing Missouri’s 2006 Amendment 2, legalising embryonic stem cell research. Sounds noble? Not to the pro-life crowds and religious groups who saw it as endorsing human cloning and embryo destruction – basically, abortion by another name.

The amendment squeaked through with 51% approval amid vicious campaigns, with opponents blasting Stowers for using his wealth (funnelled through the Stowers Institute, bankrolled by American Century dividends) to push ethically dubious science for personal gain. Protests erupted, divisions deepened, and while no laws were broken, it exposed the firm’s profits funding polarising causes. In a heartland state like Missouri, this was raw, unapologetic power play, prioritising biotech dreams over moral sensitivities. Shocking? Absolutely, especially when your retirement nest egg indirectly bankrolls such battles.

The Bitter Aftertaste: Why This Matters in a World of Crooks

American Century’s rap sheet isn’t just a series of oopsies; it’s a systemic indictment of an industry that’s lost its soul. From colluding to suppress wages to gouging fees and gambling with ethics, they’ve shown time and again that the almighty dollar trumps decency. And with holdings in outfits like Cummins, it’s a reminder that these webs of influence spread far, weaving alternative ethics into corporate ecosystems where the powerful stay powerful at everyone else’s expense.

I’ve seen enough bullshit in my travels to know when something’s off, and this reeks. Investors, employees, wake up – demand better, or keep getting served the same rotten platter. American Century might polish their image with compliance tweaks and settlements, but the grit under the nails tells the true story: a firm that’s gritty in all the wrong ways.

Lee Thompson – Founder, The Cummins Accountability Project

Shareholder Spotlight : American Century – Guts, Greed and Betrayal