GE, Workers Settle Affiliated 401(k) Fund Case for $61 Million

General Electric Co. will pay $61 million to settle litigation challenging the affiliated funds in its employees’ 401(k) plan, paving the way for resolution of a class action covering hundreds of thousands of people.

The settlement, announced Friday in the US District Court for the District of Massachusetts, is the largest ever in an Employee Retirement Income Security Act case alleging a retirement plan improperly offered proprietary funds, according to the plaintiff’s unopposed motion for preliminary approval.

The settlement amount represents approximately 21.5% of the $283 million in reasonable recoverable damages calculated by plaintiffs’ damages expert, they said.

The ...