A pension fund has sued Goldman Sachs Group Inc. for its use of bonuses to employees during the first nine months of the year. The lawsuit was filed in state court in New York.

The Security Police and Fire Professionals of America Retirement Fund say Goldman's board breached its fiduciary duties by awarding employees $16.7 billion in bonuses, and did not act in the best interests of the company and its shareholders.

A spokesman for Goldman Sachs called the suit "entirely without merit."

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.