Here are some of the plan forfeiture lawsuits that were filed in 2024:

Siemens, the global technology and manufacturing company, was accused of misuse of its forfeited retirement funds in its $8.9 billion 401(k) plan, in a class-action lawsuit.
Bank of America was sued by 401(k) plan participants, who claimed the company "wrongfully and consistently used forfeited non-invested plan assets for its own benefit, to reduce future employer contributions, rather than for the benefit of plan participants," according to the lawsuit.
Wells Fargo was sued for violating ERISA and "wrongfully and consistently" misusing $2,020,000 in forfeited 401(k) plan assets for the company's own benefit.

Last week, Intuit agreed to a settlement in 401(k) participants' lawsuit alleging that the firm reallocated forfeited funds to the "detriment of the plan and its participants." However, the judge in the case found that using forfeited funds to reduce contributions is not a fiduciary breach. That follows several new 401(k) forfeited funds lawsuits filed last month involving healthcare firms. Kaiser Foundation Health Plan's 401(k) forfeited funds lawsuit was dismissed, but Cigna employees have filed a class-action 401(k) misuse of forfeited funds lawsuit against their employer, and UnitedHealth was hit with two of these lawsuits.

Instant Insights /

UBS Joins List of 50 Firms Facing Lawsuits over Misuse of 401(k) 'Forfeited Funds'

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