A $190 Million Misclick for T. Rowe Price (fortune.com)

An anonymous reader writes: This week a court ordered restitution for any investors who'd opposed the 2013 buyout of Dell Inc., approximately $3.87 per share, plus interest. The investment firm T. Rowe Price was a vocal opponent of the deal, and had over 30 million shares scattered throughout its mutual funds. But an automated system at T. Rowe Price used its default setting -- which indicated support for the buyout -- an error which is now estimated to have cost the firm close to $190 million.
Dell won't receive the money "because, in essence, they checked the wrong box," reports Fortune. And the Baltimore Sun adds that the firm now faces the prospect of class action lawsuit from angry investors.

Comments

Why would they?

[Anonymous Coward]

Dell won't receive the money "because, in essence, they checked the wrong box," reports Fortune.

Why Dell would be receiving money in any case here? It sounds more like T. Rowe Price won't be getting any money from Dell because of T. Rowe Price's error.

Capitalism.

[Anonymous Coward]

Go on, dickheads, justify this automated algorithm bullshit. Tell us how it adds liquidity and ensures that humans can optimise their advancement.

Re:they probably saved money

[mspohr]

They get paid either way. If the computer does it, they get paid. If they do it, they get paid. If they screw up, they get paid.
Heads they win, tails you lose.
T. Rowe Price average expenses 1%
Vanguard average fees 0.18%
If you're paying them 1% a year with a gross return that is only 4% then you are paying them 25% of your profit.
Best to check on those fees before you invest.