Legg Mason 401k Lawsuit
Legg Mason is an American investment management firm with a focus on asset management and serves customers worldwide. Legg Mason offers products in equities and fixed income, as well as domestic and international liquidity management and alternative investments.
Legg Mason provides investment products to individuals, institutions and financial professionals in the US, including wealth management solutions, defined contribution, investment only and sub-advisory services financial services. Primarily, they offer mutual funds and other investments to retirement plans and other investors.
Legg Mason offers employees a defined contribution “401k” plan that allows participants to contribute a percentage of their earnings and invest those contributions in one or more investment options offered by the employers’ plans. Legg Mason is a 401k plan fiduciary.
As a fiduciary, Legg Mason is responsible for supervising, monitoring, and evaluating the performance of its 401k plans.
Many of the Legg Mason proprietary funds offered in their employee 401(k) plans have underperformed and impose higher than average fees. Meaning, Legg Mason is potentially costing participants in its 401(k) plans thousands of dollars in lost retirement savings. By including its own proprietary funds in employee 401(k) accounts, Legg Mason may be in violation of the regulations which forbid such arrangements under the “prohibited transactions” provisions of The Employee Retirement Income Security Act of 1974 (“ERISA”).