GE Faces Potential $700M ERISA Class Action
General Electric has been hit with a class action lawsuit demanding $700 million over claims that the corporation engaged in self-dealing in handling its employees' retirement plans.
September 27, 2017 at 04:40 PM
3 minute read
General Electric has been hit with a class action lawsuit demanding $700 million over claims that the corporation engaged in self-dealing in handling its employees' retirement plans.
According to the lawsuit filed Sept. 26 in U.S. District Court for the Southern District of California, GE selected proprietary mutual funds for its retirement plan when better options were available for its employees.
“Tainted by self-interest, GE's investment conduct was imprudent and disloyal. GE selected and retained its poor-performing proprietary mutual funds for the Plan when superior investment options were readily available,” the complaint said. “Moreover, to the detriment of the Plan's participants, GE through GEAM [GE Asset Management] profited from an arrangement where investment sub-advisers managed the Plan for a rate less than the amount GEAM earned from the Plan's participants in investment management fees.”
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