Franklin Resources Inc. and more than a dozen of its executives are accused of violating federal benefits law by allegedly causing the company’s $1 billion 401(k) plan to invest in high-cost, poorly performing in-house funds when better investments were available.
Since 2011, the plan has lost more than $60 million by investing in Franklin Templeton’s in-house mutual funds instead of prudent alternatives such as Vanguard funds, according to a lawsuit filed Nov. 2 in federal court in California (Fernandez v. Franklin Ress., Inc., N.D. Cal., No. 3:17-cv-06409, complaint filed 11/2/17).
The lawsuit also points out that the plan ...
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