Administration June 4, 2006

Goldman Investor Alleges Improper Fund Fee Assessment

April 30, 2004 (PLANSPONSOR.com) - An investor in a Goldman Sachs mutual fund has sued the Goldman Sachs Group Inc. and several of its units, charging that the company improperly assessed distribution fees for mutual funds
Reported by

The suit also named Goldman Sachs Asset Management L.P., the trustees and officers of the Goldman Sachs Trust, and unnamed individual defendants, according to a U.S.Securities and Exchange Commission regulatory filing. In addition, the Goldman Sachs Short Duration Tax-Free Fund, Goldman Sachs Municipal Income Fund, Goldman Sachs High Yield Municipal Fund and certain other investment portfolios of the trust were named as defendants.

The lawsuit alleges that Goldman Sachs Asset Management:

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  • charged the funds improper distribution fees
  • made improper brokerage commission and other payments to brokers that sold shares of the funds
  • lied in registration statements and reports.

Filed by Lois Burke, a shareholder of the Goldman Sachs Internet Tollkeeper Fund, in the U.S. District Court for the Southern District of New York, the lawsuit also seeks class action status to represent all shareholders in the Goldman Sachs funds between April 2, 1999, and January 9, 2000.

The complaint also alleges that the officers and trustees breached their fiduciary duties by permitting the payments to occur.

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