Franklin Templeton Settles 401(k) Class-Action Lawsuit for $14 Million

Posted on February 25th, 2019 at 3:59 PM
Franklin Templeton Settles 401(k) Class-Action Lawsuit for $14 Million

From the Desk of Jim Eccleston at Eccleston Law LLC:

Franklin Templeton Investments has agreed to pay approximately $14 million to settle a 2016 class-action lawsuit filed in the U.S. District Court for the Northern District of California.

According to the lawsuit, Franklin Templeton profited at the expense of its employees by loading its 401(k) plan with in-house investments (proprietary products) in violation of its fiduciary duties under the Employee Retirement Income Security Act of 1974.  Moreover, the plaintiffs asserted in their complaint that Franklin Templeton selected high-cost proprietary funds for its company’s 401(k) plan instead of selecting lower-cost investments.

The settlement amount of approximately $14 million is among the largest recent settlements regarding firm self-dealing in employee 401(k) plans. Last year, both Deutsche Bank and Allianz settled for $21.9 million and $12 million respectively for similar allegations of self-dealing in their employee 401(k) plans.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, franklin templeton, settlement, lawsuit, 401k

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