BAE Systems Escapes 401(k) Forfeiture Suit, Legal Fee Challenge

BAE Systems Inc. defeated a proposed class action over its 401(k) plan when a federal judge upheld the company’s handling of forfeited contributions and rejected a challenge to legal fees paid to Groom Law Group in connection with the plan.

Judge Anthony J. Trenga’s Thursday opinion turned on a close reading of the BAE plan document and its instructions with respect to employer contributions that are forfeited by workers who leave the company after a short period. According to Trenga, the plan mandates that these forfeitures be put toward both current and future employer contributions, which defeats the lead plaintiff’s ...