BMO Financial Secures Dismissal of 401(k) Forfeiture Lawsuit

BMO Financial Corp. won’t have to defend itself against a complaint alleging it unlawfully used forfeited money in its 401(k) plan to offset its future contributions instead of paying expenses normally passed on to plan participants.

John Shulak, a participant in BMO’s defined contribution employee pension benefit plan, didn’t sufficiently allege the plan violated the Employee Retirement Income Security Act by using the forfeited funds to offset BMO’s future contributions, the US District Court for the Northern District of Illinois said Monday. He also failed to adequately claim that BMO’s fiduciary duties under ERISA required it to give participants benefits ...