Legal

This class action suit is one of 50 suits filed in the past two years by employees challenging how employers use the “forfeited funds” from departing employees who leave before they are vested in the retirement plan.

Now, the health insurer is facing a second 401(k) suit this year, alleging forfeited funds from departing employees were improperly used, after settling another 401(k) lawsuit in December for a record $69 million.

Along with the FTC, the Department of Justice has filed a statement of interest in the lawsuit, accusing the asset management firms of suppressing coal production and driving up prices.

A former employee, on behalf of 28,000 participants, has sued the retirement services provider over mismanagement of its Teachers Insurance and Annuity Association plan, notably retaining an underperforming fund for 16 years.

Following the sudden departure of its CEO, the health insurer is now facing an employee lawsuit, alleging UnitedHealth reduced its employer contributions to the 401(k) plan by more than $19 million by using forfeited funds from departing employees, an ERISA violation.

The health insurer is accused of using forfeited funds from departing employees to reduce employer contributions to the retirement plan instead of using the funds to reduce administrative fees.