Goldman Sachs Hit With Class Suit Over 401(k) In-House Funds (1)

The Goldman Sachs Group Inc. is the latest financial services company to be accused of filling its 401(k) plan with underperforming proprietary mutual funds, according to a class action complaint filed in the Southern District of New York.

Goldman’s 401(k) plan has about $7.5 billion in assets and about 35,000 participants with account balances, making it one of the 100 largest 401(k)-style retirement plans in the country, according to the lawsuit.

Goldman’s 401(k) plan offered proprietary mutual funds that earned fees for the investment bank, even as these funds underperformed and saw “large redemptions from other investors,” the Oct. 25 ...