Photo: Goldman Sachs on New York Stock Exchange. Credit: Richard Drew/AP

While there's been a flurry of activity on the excessive-fee–litigation front, Wall Street powerhouse Goldman Sachs last week won its big class-action excessive-fee suit, which was brought on behalf of 17,000 participants in the company's $7.5 billion 401(k) plan.

The suit, brought by participant Leonid Falberg, alleged that by investing in its own proprietary mutual funds, Goldman and its in-house fiduciaries breached their duties under the Employee Retirement Income Security Act (ERISA) by "only reluctantly and belatedly" removing underperforming Goldman investment funds as options in 2017, failing to consider lower-cost institutional investment vehicles, and failing to claim "free rebates" on behalf of the plan that allegedly were available to other similarly situated retirement plans which invested in the Goldman funds.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.