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GE Still Facing Suit Over Affiliated 401(k) Funds

Dec. 17, 2018, 4:09 PM

General Electric Co. can’t escape a lawsuit by employees who say they lost hundreds of millions of dollars in retirement savings because the company filled its $28.5 billion 401(k) plan with high-cost affiliated funds.

A federal judge trimmed one count from the proposed class action after finding it wasn’t brought within the time period prescribed by the Employee Retirement Income Security Act. An additional count—that GE earned money off the plan’s mutual funds in violation of ERISA’s prohibited transaction rules—remains pending after the judge rejected each of GE’s arguments.

The Dec. 14 ruling comes four months after Judge Indira Talwani ...