The conversion would not harm shareholders or the fund, says the lawsuit, which alleges that premium class expenses are typically 24% lower than retail class expenses. “The savings to class shareholders would be significant,” the lawsuit says.

Fidelity, as the fund’s investment manager, “benefited significantly” from the situation, says the complaint, which alleges that the fund giant receives more annual fees from the government fund than from any other Fidelity investment fund – specifically, US$1.95 billion in the past -dollars three fiscal years.

“The excessive fees charged to class shareholders unlawfully increase these fees. “Fidelity knowingly facilitated the trustee’s and defendants’ breaches of fiduciary duty and is making unfair profits from the excess expenses that were intended to remain in the pockets of the class shareholders,” the lawsuit states.

“Neglect by trustees and officials of their fiduciary and contractual duties.” The lawsuit alleges that the adoption of tariffs with Fidelity’s support resulted in enormous losses for affected shareholders. She is demanding injunctive relief and compensation for alleged damages amounting to millions.

The named plaintiffs, New York residents Bryan Davis and Ethan Sam, are Fidelity customers who own retail-class shares and say they meet the minimum investment requirement to qualify for premium shares.

The lawsuit alleges breaches of fiduciary duty to trustees and defendants, breaches of good faith and good faith to trustees, and unjust enrichment and aiding and abetting breaches of fiduciary duty to Fidelity.

“Fidelity strongly denies the allegations and will vigorously defend itself against the complaint,” a company spokesperson told ThinkAdvisor via email on Wednesday.