In fact, a class action lawsuit is filed against Franklin Templeton Investment by its retirement plan participants. The suit accuses the investment firm of violating the Employee Retirement Income Security Act (ERISA). Thus, the investment firm favored its own funds in its own retirement plan, as the complaint notes.
Mark P. Kindall and Robert A. Izard of Izard Kindall & Raabe LLP, Gregory Y. Porter and Mark G. Boyko of Bailey & Glasser LLP and Joseph A. Creitz of Creitz & Serebin LLP are representing the plaintiff.
That’s to say, the suit alleges Franklin Templeton selected and favored its funds. However, there were other stocks, which were cheaper and had better performance.
The lead plaintiff is Marlon H. Cryer. He used to work for Franklin Templeton and it was in February when he was let go. So, the complaint claims the investment firm failed to complete its fiduciary duty. In other words, the defendant didn’t purchase in-house funds for plan participants with reasonable fees. Instead, what the investment firm did was paying to itself and its subsidiaries, as the plaintiff asserts. In addition to that, the investment firm had the opportunity of selecting and promoting other mutual funds, which were less expensive.
It’s essential to note that the US District judge allowed the lawsuit to proceed and pointed out that plaintiff and other class members suffered from the defendant’s plan management.
Furthermore, Cryer mentioned that the investment firm’s plan lets participants have an access to the defendant’s money market. This means that Franklin Templeton doesn’t offer a stable value fund. As a consequence, plan participants have to pay a higher amount of money to the company.
Moreover, the suit says Franklin Templeton made plan participants spend nearly $1 billion in imprudent investment options.
The lawsuit is seeking to represent all the individuals, who participated in 401(k) plan from July 38, 2010, to the date of the final judgment.
Franklin Templeton Investments (FTI)
The FTI is among the largest and reputable asset management groups throughout the world. It’s worth to refer to about 24 million private, as well as professional and institutional investors. The company offers its customers various funds that invest across market sectors, asset classes, etc.
The Employee Retirement Income Security Act (ERISA)
What is the Employee Retirement Income Security Act (ERISA)? It is the federal law, which aims to protect employees who participate in pension and health plans. Additionally, ERISA includes employee stock options plans as well. In this case, employees usually have the opportunity of buying shares of the company’s stock. Usually, the price is lower, if compared with the market price of the shares. So, there are minimum standards set by this law that private businesses must follow.
Did your employer violate the ERISA? Don’t hesitate to file a lawsuit and receive the money, which you lost from the benefit plans that ERISA covers.