First of its kind ERISA class action addressed unprecedented use of risky proprietary investment funds for managing a 401(k) plan.

Strategy allegedly wiped out 401(k) and aided in GWA LLC bankruptcy.

HARTFORD, CT / ACCESS Newswire / September 19, 2025 / Today, a federal judge granted final approval of a $7.9 million settlement to resolve a class action against hedge fund GWA LLC and its founder George A. Weiss. Employees and participants in the GWA LLC 401(k) Profit Sharing Plan alleged that GWA and Weiss breached their fiduciary duties and misused employee retirement plan assets to further their own pecuniary interests in violation of the Employee Retirement Income Security Act (ERISA). The settlement recovery averages about $26,000 per class member.

"This is an exceptional recovery for a novel, first of its kind 401(k) ERISA class action," said Michelle C. Yau, chair of Cohen Milstein's ERISA & Employee practice. "GWA's 401(k) strategy was extremely risky and egregious, compounded by the fact that the plan was 100% invested in its own hedge fund strategies. This settlement is a significant victory for the former employees and provides them meaningful relief, despite the fact that both defendants are now insolvent."

Specifically, the plaintiffs alleged that 100% of GWA LLC 401(k) Profit Sharing Plan investments (all of which were 401(k) assets) were and continued to be invested in The Weiss Funds, which included the company's flagship hedge fund, Weiss Multi-Strategy Partners (Cayman) Ltd. and the company's mutual fund, Weiss Alternative Multi-Strategy Fund, which generally replicated the hedge fund's strategy.

This strategy is highly unprecedented for a retirement plan. Prevailing practice for retirement portfolio allocation should reflect a mix of asset classes to produce the long-term capital appreciation necessary for participants to save adequately for retirement.

Plaintiffs further claimed that the Weiss Mutual Fund lacked the performance history, market acceptance, and cost structure to be a substantial investment for the 401(k) plan.

As a result, 401(k) plan participant accounts were allegedly worth at least 30% less than what they would have been had the plan been managed prudently in accordance with ERISA.

GWA LLC declared bankruptcy in April 2024 and closed all its funds. A few months ago, in June of 2025, the other defendant in this action, George Weiss, also declared bankruptcy.

The case, Andrew-Berry, et al. v. Weiss, was filed on July 24, 2023 in the United States District Court for the District of Connecticut. It was brought on behalf of employees and other participants in the GWA LLC 401(k) Profit Sharing Plan.

Cohen Milstein is actively monitoring alternative investment entities, such as hedge funds and private equity firms, offering traditional 401(k) retirement plans to employees. Such entities are not beholden to IRS and SEC regulations like traditional business and could present greater risk for 401(k) participants. In 2022, Cohen Milstein settled a class action against Wells Fargo 401(k) plan administrators for $32.5 million, based on similar allegations.

Press Contact: cohenmilstein@berlinrosen.com

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SOURCE: Cohen Milstein Sellers & Toll PLLC