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Charles Schwab Wins Round in Suit Over In-House Funds in 401(k)

Sept. 21, 2018, 2:41 PM

Charles Schwab Corp. convinced a federal judge in California to toss multiple claims by an investor in its 401(k) plan challenging the company’s decision to allow allegedly high-fee, poorly performing affiliated funds in its plan.

The ruling, issued Sept. 20 by Judge Claudia Wilken, isn’t a complete victory for the financial firm, as Wilken allowed the investor who filed the lawsuit time to amend some of his flawed claims.

Wilken’s decision is the latest to come among a string of lawsuits against financial companies accused of adding affiliated and allegedly high-fee and poorly performing funds in 401(k) plans at their...

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