Charles Schwab Facing ERISA Class Action Lawsuit

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Santa Clara, CA: A class action alleging violations of the Employee Retirement Income Security Act of 1974 ("ERISA") 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.

Specifically, 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").

Participants in the Schwab 401(k) Plan may be members of the class.

Plaintiffs are represented by Berger & Montague LLP and by Schneider Wallace Cottrell Konecky Wotkyns LLP.

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