Sherrie Boutwell of Boutwell Fay was recently quoted in a Law 360 article discussing a California federal judge's decision allowing a lawsuit to proceed against Intuit for allegedly misusing 401(k) plan forfeitures. This case highlights a growing trend of ERISA lawsuits challenging how employers use forfeitures in their plan.
Key Takeaways:
A federal judge in California has denied Intuit's dismissal motion in a lawsuit alleging they breached their fiduciary duty by using forfeitures to offset employer contributions for new employee matches instead of reducing plan fees.
Another federal court in California refused to dismiss a similar case against Qualcomm.
These rulings suggest courts are receptive to claims challenging how employers handle 401(k) forfeitures.
As discussed in the article, Boutwell Fay is encouraging employers to get ahead of the curve on this issue as steps can be taken now to mitigate these risks.
For over 20 years, the attorneys and other professionals at Boutwell Fay have been successfully solving the complex legal puzzles in the areas of employee benefits and ERISA. We have a federal practice in all 50 states.
We are a nationally recognized ERISA law firm with an unquenchable thirst to continue to learn, share, and deeply care for clients.
CA 949-660-0481
NY 332.900.2550
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