Goldman Sachs has been sued for the alleged “unlawful” management of its company 401(k) plan for using their in-house actively managed proprietary mutual funds.
A participant in the $7.5 billion 401(k) plan sued Goldman Sachs, claiming the firm breached its fiduciary duties under federal retirement law by retaining costly and underperforming proprietary investments in its 401(k) plan.
It should be noted that Goldman removed its proprietary mutual funds from its 401(k) plan in 2017, but the plaintiff claims it did so only after legal rulings against other financial services firms highlighted its liability risk.
As I will always note, any mutual fund company using their proprietary funds in their 401(k) plan are a target of litigation.
