Hobbs v. Principal Financial Group, Inc.

Andrews, Chief Judge.

William and Betty Hobbs sued Principal Financial Group, Inc. and Principal Mutual Life Insurance Company (jointly referred to as Principal) alleging that, while Ernie Malcolm James was acting as an agent of Principal, he fraudulently induced them to invest money in the “Principal Manager’s Fund,” a nonexistent investment fund which he falsely told them was a Principal fund. The Hobbses’ suit, which seeks to impose vicarious liability on Principal for damages caused by the actions of James, alleges in four counts that Principal defrauded them through the actions of its…