T. Rowe Price Accused of Self-Dealing With 401(k) Plan

T. Rowe Price Group Inc. is accused of profiting at the expense of its employees’ retirement savings by offering, almost exclusively, in-house mutual funds in the company’s $1.7 billion 401(k) plan (Feinberg v. T. Rowe Price Group Inc., D. Md., 1:17-cv-00427, complaint filed 2/14/17).

T. Rowe Price offered between 80 and 95 investment funds to participants each year—all in-house funds, according to a lawsuit filed Feb. 14 in federal court in Maryland. These funds were expensive compared not only to funds offered by other investment companies, including Vanguard Investments, but also compared to other funds offered by T. ...