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Charles Schwab Wants 9th Cir. to Send 401(k) Suit to Arbitration

Oct. 16, 2018, 5:05 PM

Charles Schwab Corp. is urging a federal appeals court to send a lawsuit to arbitration that accuses it of loading its 401(k) plan with proprietary investment options that allegedly carried excessive fees and performed poorly.

At issue in the case are two rulings by a federal judge in California holding that the company couldn’t use an arbitration agreement in employment contracts or 401(k) plan documents to block a lawsuit over how the plan was managed because the lawsuit was brought “on behalf of the plan.”

The financial company asked the U.S. Court of Appeals for the Ninth Circuit Oct. 15...

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