Charles Schwab 401(k) Lawsuit Trimmed but Moves Forward

Charles Schwab Corp. convinced a federal judge to dismiss all but one claim in a proposed class action targeting investments in its 401(k) plan.

Former Schwab employee Michael Dorman can move forward with a challenge to how the company replaced an affiliated stable value fund in its 401(k) plan with other funds.

But Dorman’s other allegations, which challenged the fees and performance of the plan’s Schwab-affiliated funds and certain loan transactions, were dismissed in a Feb. 8 order by Judge Claudia Wilken of the U.S. District Court for the Northern District of California.

Dorman’s surviving claim accuses Schwab of swapping ...