Goldman Sachs Defends Would-Be Class Suit Over 401(k) Funds

Goldman Sachs Group Inc. defended a lawsuit challenging the affiliated mutual funds previously offered by its 401(k) plan, telling the Southern District of New York that the challenged funds performed at or near their benchmarks and carried reasonable fees.

The five Goldman Sachs mutual funds challenged by the lawsuit were “widely used by unaffiliated investors” and carried reasonable fees ranging between 0.47% and 0.79%, Goldman said in a motion to dismiss filed Monday. And offering affiliated funds as a 401(k) plan investment is a “common practice expressly sanctioned by the Department of Labor,” Goldman said.

The proposed class action, ...