Franklin Templeton Sued Again Over 401(k) Plan’s In-House Funds

Franklin Templeton was sued Tuesday by three participants in its its 401(k) plan who say they were offered too many in-house funds that performed poorly while charging high fees.

The company—formally known as Franklin Resources Inc.—filled the $2.2 billion retirement plan covering its workforce with proprietary investments that underperformed their benchmarks, had poor ratings, and were unpopular with other investors, the participants said in a proposed class complaint. These funds charged high fees that allowed Franklin and its subsidiaries to earn more than $33 million between 2019 and 2023 while costing plan participants tens of millions of dollars in ...