Goldman Sachs Beats Appeal Over In-House 401(k) Mutual Funds

Goldman Sachs Group Inc. defeated an appeal by a class of employees who said their 401(k) plan offered poorly performing in-house mutual funds that paid fees to the company.

The employees never introduced evidence showing that Goldman kept its funds in the plan for the purpose of advancing its own interests, the US Court of Appeals for the Second Circuit said Wednesday in an unpublished opinion rejecting claims that Goldman breached its duties of prudence and loyalty. In fact, the record “suggests otherwise,” because it includes evidence that Goldman managed the plan using a “robust process” that included fiduciary training ...