ERISA Self-Dealing Rules Clarified As GE Suit Rolls Along

Law360 (October 30, 2019, 8:51 PM EDT) -- A Massachusetts federal judge on Wednesday denied General Electric Co.'s attempt to scrap her decision to allow a claim that GE improperly invested workers' retirement savings in subpar company-affiliated funds, clarifying the scope of an exemption to federal benefits law's self-dealing rules.

The Employee Retirement Income Security Act's Prohibited Transaction Exemption 77-3 still can't apply to the company because workers leading the proposed class action successfully pled a fiduciary-breach claim under ERISA that alleges substantial self-dealing tied to a 2016 deal with State Street Corp., U.S. District Judge Indira Talwani said.

"Plaintiffs have alleged that beyond merely investing in in-house funds...

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