T. Rowe Price controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2022
T. Rowe Price settles 401(k) lawsuit
Settlement
T. Rowe Price agreed to settle a 2017 lawsuit alleging that it profited excessively from workers’ investments in its 401(k) plan. The settlement totals $7 million and requires the plan to add a brokerage window. The company said it continued to believe in the strength of its case.
Company response
Denial — T. Rowe Price
While we continue to believe in the strength of our case, avoiding the distraction and cost of further litigation will enable us to focus fully on serving our clients and participants.
Source excerpt
Court documents filed late last week show the financial services giant has agreed to settle the 2017 lawsuit, which alleged the company profited excessively from of its workers investments in the plan, which was composed entirely of its own products.
T. Rowe Price is putting a lawsuit over its 401(k) behind it for a price tag of $7 million, and as part of the settlement, it's opening the plan to outside investments.
The parties agreed to settle the case last year just ahead of a trial that was scheduled to begin Sept. 13.