Worked for Goldman Sachs?
Consumer Advocates, P.L.L.C., is investigating recent accusations that Goldman Sachs may have hurt its employees' retirement savings by unwisely packing the company's 401(k) plan with high-fee investment options.
Allegedly, the company did so in order to benefit Goldman Sachs at the expense of 401(k) plan participants.
Specifically, according to a complaint recently filed by a plan participant, Goldman Sachs choose to keep poorly performing proprietary mutual funds in the plan--despite the fact that an objective fiduciary in its position would have removed the funds. Allegedly, while underperforming proprietary funds saw large redemptions from other investors, Goldman Sachs kept these funds in the plan, allowing it to stem the consequences of further depletion of fund assets.
Additionally, the recent complaint alleges that Goldman Sachs’ own plan paid more for proprietary mutual funds than other plans invested in the same funds:
Until the end of 2015 or early 2016, the defendants invested in Institutional shares of proprietary mutual funds in the plan. The Institutional shares generally provided fee rebates (revenue sharing) of 0.05% to 0.10%, which other plans re-credited to participant accounts or used to offset administrative expenses. However, the defendants did not obtain the same rebates for the plan, the complaint states, and instead allowed Goldman Sachs to retain the extra 0.05% to 0.10% as additional revenue to the firm.
Consumer Advocates is investigating these claims on behalf of current and former Goldman Sachs' employees who are participants in the company's 401(k) plan If you have worked for Goldman Sachs anytime after June 2013 and joined the 401(k) plan, contact us below for additional information.