Employees Say GM, Bank Mishandled 401(k)

Law360, New York (March 12, 2007, 12:00 AM EDT) -- A group of General Motors Corp. employees has filed a proposed class action against GM Investment Management Co. and State Street Bank and Trust Co., claiming the two mishandled their pension funds by making dubious investments.

GM and State Street took unnecessary risks when they invested close to $1 billion in shares for the employees’ 401(k) retirement money into undiversified single equity stock funds, according to the complaint, filed in the U.S. District Court for the Southern District of New York on March 8.

Additionally, the...
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