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Amazon Sued by Employees for Mismanaging $350 Million in Forfeited 401(k) Funds

The online retailer has been hit with a class-action lawsuit, alleging it violated its ERISA fiduciary duties by using forfeited 401(k) funds to offset company contributions instead of reducing administrative fees for participants.

By Lynn Cavanaugh | January 07, 2025 at 07:25 PM
(AP Photo/Elaine Thompson, File)

Amazon is the latest employer to face a class-action lawsuit over misuse of 401(k) funds. The suit alleges that the company used nearly $350 million in retirement plan contributions forfeited by employees to offset its own contributions, rather than to reduce plan-administration fees, violating its fiduciary duties under federal law.

In 2024, numerous class action 401(k) lawsuits were filed by plan participants over misuse of forfeited assets from former employees, including Bank of America, Wells Fargo, Siemens, and Nordstrom.

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