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GE Hit With Second Lawsuit Over 401(k) Plan Investments, Fees

Oct. 31, 2017, 1:26 PM

General Electric Co. faces a second lawsuit challenging the allegedly imprudent investments in proprietary mutual funds included in the company’s $28 billion 401(k) plan.

GE’s selection of in-house mutual funds for the plan allegedly provided its financial services subsidiary, GE Asset Management, a constant source of fees and helped inflate GEAM’s market value for a subsequent sale of the subsidiary, according to a lawsuit filed Oct. 30 in federal court in Massachusetts (Sullivan v. General Electric Co., D. Mass., No. 1:17-cv-12123, complaint filed 10/30/17). GE’s actions weren’t for the exclusive interest of the plan or its participants, as ...