Goldman Sachs won a dismissal of a proposed class action over its alleged imprudent use of high-cost, underperforming proprietary mutual funds as investment options in their retirement plan.
U.S. District Judge Edgardo Ramos in Manhattan found no proof that Goldman’s 401(k) retirement committee’s decision to use five funds managed by Goldman Sachs Asset Management created a conflict of interest because a Goldman affiliate received management fees. Ramos also refuted that the failure to adopt an investment policy statement was a breach of fiduciary duty.
