Reuters
Goldman Sachs defeats employee class action over retirement plan
NEW YORK (Reuters) -Goldman Sachs Group Inc won the dismissal of a proposed class action by tens of thousands of employees over its alleged imprudent use of high-cost, underperforming in-house mutual funds as investment options in their retirement plan. U.S. District Judge Edgardo Ramos in Manhattan found no proof that Goldman’s 401(k) retirement committee’s decision to use five funds managed by Goldman Sachs Asset Management created a conflict of interest because the affiliate received management fees. He also found no duty for Goldman to have more quickly removed poorly performing funds from the plan, which had about three dozen investment options, and called it speculative to suggest the committee would have “acted differently” if it had more formal criteria to assess fund performance.
