Class Action Suit Filed Against Charles Schwab Corporation Alleging It Violated ERISA By Charging Excessive And Unreasonable Fees In The 401(k) Plan For Schwab Employees And By Including Schwab-Affiliated Investment Products And Services In The Plan
PHILADELPHIA, PA, January 20, 2017 – A class action lawsuit has been filed in the United States District Court for the Northern District of California against the Charles Schwab Corporation (“Schwab”) and certain of its subsidiaries on behalf of the participants in the 401(k) plan Schwab offered to its employees.
The complaint claims that Schwab included among the plan’s investment options certain mutual funds and collective trusts that were affiliated with Schwab, which allowed Schwab and its subsidiaries to collect unreasonable and excessive fees from its employees’ retirement savings. The complaint further alleges that Schwab imposed improper charges through a self-directed brokerage program, and used for its own purposes unallocated cash belonging to the 401(k) plan.
The complaint alleges that Schwab’s conduct violated the fiduciary duties and prohibited transaction rules imposed by the Employee Retirement Income Security Act of 1974 (“ERISA”).
Berger Montague, a firm based in Philadelphia, PA, represents the plaintiff in the lawsuit. The firm represents plaintiffs in complex and class action litigation and is consistently ranked as one of the top plaintiffs’ law firms in the United States by many publications. Berger Montague has extensive experience representing retirement plan participants, investors, and consumers in class action litigation, and the firm has played lead roles in major cases for over 40 years resulting in recoveries of many billions of dollars for their clients and the classes they represent. Further information about Berger Montague can be found at www.bergermontague.com.
In addition to Berger Montague LLP, the plaintiff is represented by Schneider Wallace Cottrell Konecky Wotkyns LLP, which represents retirement plan participants, workers and consumers in class action litigation matters around the country. For 24 years, the firm’s attorneys have handled matters involving ERISA benefits, workplace benefits, disability rights, employment discrimination issues and consumer rights. Schneider Wallace has offices in Emeryville, California; Scottsdale, Arizona; and Houston, Texas. On the Web: http://www.schneiderwallace.com
Participants in the Schwab 401(k) Plan may be members of the class and can obtain more information by calling 215.875.3000. Participants can also contact Todd Collins at 215.875.3040 or firstname.lastname@example.org or Ellen Noteware at 215.875.3051 or email@example.com