Franklin Templeton Inks $13.85M 401(k) Class Settlement

Franklin Resources Inc. will pay $13.85 million and increase its 401(k) match to resolve a class action challenging the fees and funds in its retirement plan.

The Feb. 15 deal resolves allegations that the financial company, which does business as Franklin Templeton, profited at the expense of its employees’ retirement savings by including high-fee proprietary funds in its 401(k) plan. Employees claimed they lost about $64 million in retirement savings because of these funds.

The deal, which is expected to benefit about 5,000 people, also requires Franklin Templeton to bump its 401(k) match from 75 percent to 85 percent for ...