BlackRock Workers Advance Challenge to In-House 401(k) Funds

BlackRock Institutional Trust Co. must face the bulk of a proposed class action claiming it improperly favored its own investment products in the 401(k) plan covering its workers, a federal judge in the Northern District of California ruled Sept. 3.

The proposed class of 10,000 plan participants and beneficiaries are advancing claims that BlackRock, the world’s largest asset manager, breached its fiduciary duties under the Employee Retirement Income Security Act by filling its 401(k) plan with expensive investment products that paid fees to the company.

BlackRock argued that the fiduciary breach claims based on proprietary investments should be dismissed, ...