Franklin Templeton Can’t Pause 401(k) Suit Pending USC Ruling

Franklin Templeton lost its fight to pause a 401(k) excessive-fee class action pending an appeals court ruling over the validity of the University of Southern California’s arbitration agreement.

In light of the limited potential effect of the USC case on the Franklin Templeton litigation, the financial firm is unlikely to suffer significant harm if its requested stay is denied, Judge Claudia Wilken of the U.S. District Court for the Northern District of California held July 5.

A decision in the USC case, which currently sits in the U.S. Court of Appeals for the Ninth Circuit, could affect only the scope ...