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Charles Schwab 401(k) Arbitration Ruling Will Stand in 9th Cir.

Nov. 8, 2019, 2:26 PM

A recent decision forcing a dispute over Charles Schwab Corp.'s 401(k) plan into arbitration won’t be revisited by the full Ninth Circuit.

The Schwab case asks whether a company can rely on an arbitration clause in its 401(k) plan to avoid a proposed class action alleging plan mismanagement. In August, the U.S. Court of Appeals for the Ninth Circuit sent the Schwab suit to arbitration based on a provision in the company’s 401(k) plan. The decision came one year after the court rejected USC’s attempt to have a similar retirement plan challenge sent to arbitration.

Plan participant Michael Dorman asked...

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