401K Participants Sue GE For Breach Of Fiduciary Duty

A lawsuit filed in U.S. District Court in San Diego alleges that GE engaged in “prohibited transactions and unlawful self-dealing detrimental to the three named plaintiffs individually and as representatives of a class.” The plaintiffs, represented by Sanford Heisler Sharp, allege that funds managed by GE Asset Management harmed plan participants due to underperformance. “GE and the plan’s trustees were obligated by law to act for the exclusive benefit of plan participants and beneficiaries,” Charles Field, a partner at Sanford Heisler Sharp, said in the news release. “Instead, they selected poor- to mediocre-performing investments, and managed and administered them in ways that harmed the participants and beneficiaries.” – “We have no comment on ongoing litigation but we intend to fully defend the case,” a GE spokeswoman said.