HP Successfully Defends Class Suit Over 401(k) Forfeiture Usage

HP Inc. doesn’t violate the Employee Retirement Income Security Act by using forfeited 401(k) money to pay contributions it’s required to make to the plan, a federal court said, dismissing a proposed class action.

Plaintiff Paul Hutchins brought the suit on behalf of a proposed class of more than 30,000 plan participants and beneficiaries. Alleging six claims under ERISA, Hutchins said that the money forfeited by employees who leave the California-based computer hardware maker early should be used to pay expenses that are charged to plan members. HP puts its financial interests ahead of the retirement savings of its workers, ...