In 2024, Bank of America was sued by 401(k) plan participants over misuse of forfeited funds and Nordstrom was hit with an ERISA lawsuit over misuse of forfeited funds, as well as excessive 401(k) fees. Wells Fargo was also sued by participants over misuse of 401(k) forfeited funds. These cases are still pending, while similar 401(k) forfeiture suits filed against Clorox, Thermo Fisher and Honeywell were dismissed at the end of 2024.

Related: Charter Communications’ workers sue over misuse of 401(k) forfeited funds, in emerging trend

In the Kaiser case, the plaintiff alleged that KFHP was a fiduciary, however, the judge noted that while Kaiser had “some control over the administration of the Plan, KFHP’s status as an administrator is not enough to support Plaintiff’s claims.” And thus, she concluded, “because Plaintiff has not plausibly alleged that KFHP acted as a fiduciary of the Plan under ERISA, the Court agrees with Defendants that Plaintiff has not plausibly alleged that KFHP caused the injury alleged in this action.”

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Kaiser Foundation Health Plan’s 401(k) ‘forfeited funds’ lawsuit is dismissed

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