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T. Rowe Price Self-Dealing Case

A participant in the T. Rowe Price U.S. Retirement Program, on behalf of all similarly situated participants and beneficiaries of the Plan and predecessor plans, has accused the firm of self-dealing by offering only T. Rowe Price proprietary funds in its 401(k) plan, and failing to monitor the fees and performance of the funds, thus operating in its own economic interests rather than the interest of plan participants. Plan fiduciaries are also accused of offering higher retail share class mutual funds when less expensive “sleeves” of such funds were available, whether via institutional share classes, CITs, or even separately managed portfolios. According to the lawsuit, even if less expensive options did not exist, the Plan assets were large enough to leverage a better deal.

www.planadviser.com; February 17, 2017.