Shareholder Spotlight : Invesco – Round Two

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Remember Invesco Ltd? That polished façade we cracked open in the last piece, revealing the greenwashing grift, the market-timing sleaze, and those dodgy Indian dealings? Well, strap in, because we’re not done. If you thought that was the extent of their bullshit, think again. This outfit doesn’t just dip its toes in the muck – it dives headfirst into a cesspool of employee abuse, self-serving schemes, and cut-throat debt wars that leave everyone else choking on the fumes. And yes, they’re still cosy with Cummins Inc., clutching about 1.2 million shares worth roughly $381 million, proving once more they’re just another greedy player eager to sink cash into the grimy machinery TCAP is hell-bent on dragging into the light.

But we’re digging deeper here, into the scandals they hoped would stay buried. The kind that show Invesco as a machine that chews up workers, exploits its own retirement plans, and brawls like a street fighter in bankruptcy courts. It’s infuriating, it’s brazen, and it’s all too typical of these financial vampires sucking the life out of decency for a quick buck. Let’s tear into a second round with these creeps.

The Employee Retaliation Nightmare

Start with the human cost, because nothing screams “corporate scum” like screwing over your own staff when they’re at their most vulnerable. Back in 2019, Raslyn Cobbin-Wooten, a former media relations director at Invesco, hauled the company into court, alleging they fired her in retaliation for taking protected leave under the Family and Medical Leave Act (FMLA) after dealing with health issues. She also claimed racial discrimination under Title VII, pointing to denied perks handed freely to a white colleague, ignored complaints to HR, a spiteful performance review, and being shoved onto an endless improvement plan that led straight to the exit door.

This wasn’t some quiet settlement swept under the rug. A jury in 2021 hammered Invesco with a $1 million verdict – $618,500 of that in punitive damages to punish their vile conduct – plus $385,000 in liquidated damages and interest on the FMLA claims. They rejected the discrimination angle, but the message was clear: Invesco played dirty. And get this – the company had the gall to push for a new trial, whining about the punitive hit. The judge not only shot that down but slapped them with a $3,480 sanction for pretrial antics, including storming out of depositions and peddling false info to the court. Bloody outrageous. Cobbin-Wooten fought back, arguing the firm offered no real grounds to overturn the jury, and she even sought a retrial on the bias claims. In the end, Invesco dodged that bullet, but the stain remains. How the hell do you run a “responsible” investment giant while treating employees like disposable trash? It’s a disgrace that boils the blood.

The 401(k) Self-Dealing Sham

Shifting gears to their internal greed fest: Invesco’s own 401(k) plan, meant to safeguard employee retirements, turned into a blatant profit pump for the company. In 2018, participant Diego Cervantes filed a class action, accusing Invesco of breaching fiduciary duties by cramming the plan with proprietary funds and ETFs – over 150 to 205 options, most tied to Invesco affiliates. This wasn’t prudent management; it was allegedly using workers’ savings as a lab rat for their products, jacking up fees and delivering subpar returns to line corporate pockets.

The suit painted a picture of confusion and exploitation: multiple share classes with varying fees and performance, restricting self-directed accounts to Invesco ETFs only, and failing to leverage the plan’s size for better deals. Worse, some options allegedly hid liquidity risks tied to the Invesco Short Term Investment Fund, which had been fined $10 million by regulators for past sins. Defendants, including execs and subsidiaries, allegedly treated participants as captives, boosting assets under management at their expense.

Invesco fought it, getting an initial dismissal in 2019, but the judge allowed an amended complaint. By 2020, they caved, settling for $3.47 million – no admission of guilt, of course – plus tweaks like allowing non-proprietary ETFs in self-directed accounts. A paltry win for victims, but it exposes the hypocrisy: preaching ESG virtue while allegedly fleecing your own workforce’s futures. What a load of contemptible hypocrisy. It makes you want to scream – these bastards prioritize their bottom line over basic loyalty.

The Robertshaw Debt Debacle

Now, plunge into the shadowy world of distressed debt, where Invesco has morphed into a full-on vulture, scrapping in courts over bankrupt carcasses. Take the 2023-2024 mess with Robertshaw, an appliance parts maker drowning in supply woes and costs. Invesco, holding a chunk of their loans, got shoved aside in a series of financing deals that allegedly violated agreements, diluting their collateral and stripping their “required lender” status.

It kicked off with a 2023 uptier transaction where lenders, including rivals backed by Bain Capital, injected new money and reshuffled priorities, pushing Invesco down the pecking order. Invesco sued in New York and Texas courts, crying foul over “sham” moves like routing funds through a non-subsidiary entity to skirt covenants. Robertshaw filed Chapter 11 in February 2024, sparking an adversary proceeding. A Texas bankruptcy judge in June 2024 ruled Robertshaw breached the credit deal but refused to void the transactions or restore Invesco’s control, allowing them to chase monetary damages instead.

Undeterred, Invesco filed a $100 million-plus claim in July 2024, repeating breach allegations, while objecting to Robertshaw’s sale to the rival group. Appeals flew, with a district court temporarily staying the sale in August 2024, but as of now, it’s a grinding stalemate. Invesco’s tactics – aggressive lawsuits, demands for injunctions – mirror the brutal plays of hedge fund sharks, a far cry from their “responsible” image. This isn’t savvy investing; it’s predatory warfare that drags companies deeper into the mire. Damn infuriating how they cloak it in business jargon while livelihoods hang in the balance.

The Off-Channel Communication Fiasco

And just when you think the sleaze can’t pile higher, enter the 2024 WhatsApp probe. The SEC fined Invesco $35 million as part of an $88 million crackdown on 11 firms for recordkeeping lapses. Employees allegedly used personal apps like WhatsApp for business chats, dodging proper archiving and flouting rules meant to ensure transparency and prevent insider BS.

Invesco settled without admitting fault, but it’s another black mark: a firm managing trillions can’t even keep its comms straight? It reeks of laziness or worse, deliberate evasion. In a world where trust is currency, this is just sloppy, arrogant nonsense that erodes whatever credibility they had left.

The Grim Reckoning

Peel back these layers, and Invesco stands exposed as a relentless opportunist, grinding down employees, exploiting plans, and brawling in debt pits – all while clutching stakes in polluters like Cummins. It’s not innovation; it’s exploitation wrapped in suits and spreadsheets. Investors, workers, regulators – wake up and hold these pricks accountable before they drag more into the sludge. Enough is enough.

Lee Thompson – Founder, The Cummins Accountability Project

Sources

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