Posted June 12th, 2017.
SAN DIEGO, June 9, 2017 – Sanford Heisler Sharp, LLP today announced it is investigating GE’s management of its 401(k) Plan. Each year thousands of GE employees invest hundreds of millions of dollars in GE’s 401(k) Plan, which likely represents their primary tool for retirement planning and savings. Employees trust GE to construct a stellar plan that offered superior investment options and world-class investment management.
General Electric populated the Plan with many funds managed by GE from which GE collected millions of dollars of investment advisory fees each year.
Were you an employee for General Electric between 2010 and 2016?
Sanford Heisler Sharp is investigating to what extent these GE funds underperformed both their investment benchmarks and other readily available non-GE funds with equivalent investment strategies. We are also investigating to what extent the failure to replace the GE funds with non-GE investment options may have caused the Plan, and hence employees, to suffer losses. Finally, we are investigating possible conflicts of interest.
In addition to collecting tens of millions of dollars of investment advisory fees from the General Electric funds, after building-up its investment advisory business, GE sold it to State Street in 2016 for a reported $485 million.
If General Electric failed to manage its 401(k) Plan for the exclusive benefit of its employees, GE may have breached its fiduciary duties and engaged in prohibited transactions and unlawful self-dealing with respect to the Plan in violation of ERISA.
Attorneys from Sanford Heisler Sharp are interested in speaking with current and former GE employees about their participation in GE’s 401(k) Plan. If you are or were a participant in the GE 401(k) Plan between the years 2010 and 2016, attorneys from Sanford Heisler are on call to protect your rights. You can reach our offices by calling 619-577-4253 or via our Contact Us page.
“This investigation seeks to ensure that GE is complying with ERISA,” said Charles Field, Chair of Sanford Heisler Sharp’s Financial Services Litigation Group. “We do not intend to close this investigation until we are satisfied that the rights of all GE Plan participants are protected,” he concluded.