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State Street Self-Dealing Case

Participants in the $4.5 billion State Street Salary Savings Program (401(k) Plan) have filed suit against State Street and a long list of defendants that includes the benefits and investment committees, claiming that these fiduciaries selected State Street or affiliated proprietary products for the Plan that were not in the best interest of plan participants, but rather served the defendants financially, totaling more than $615 million in “fees and other revenue”. As the lackluster performing State Street funds were experiencing cash outflows from non-plan investment sources, the fiduciaries allegedly chose to offset the situation through the offering of the funds to a captive participant audience.

www.plansponsor.com; May 26, 2021; www.pandionline.com; May 26, 2021.