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Why (Almost) Every Mutual Fund Company Can Expect to Be Sued

March 2, 2017, 4:58 PM

If your employer’s 401(k) plan is full of mutual funds, you’re not alone: the companies that issue those mutual funds put them in their 401(k) plans, too.

But this long-standing practice may be about to change. A new wave of litigation is targeting companies that put their own investment products in their workers’ 401(k) plans. Companies like Morgan Stanley, Wells Fargo, Charles Schwab and JPMorgan are accused of profiting at their employees’ expense by stuffing their 401(k) plans full of poorly performing funds that earn big fees for the company.

At least 19 financial companies have been sued ...