Brookdale Senior Living Sued Over 401(k) Plan Forfeiture Use (1)

Brookdale Senior Living Inc. mismanages its 401(k) plan by putting money forfeited by departing workers toward its mandatory employer contributions, according to a proposed class action complaint.

The Jan. 24 lawsuit challenges how the senior living facility company handles forfeitures in the $446 million retirement plan covering its workforce. Instead of using this money to offset the administrative expenses charged to workers, the company uses to reduce the employer contributions it would otherwise have to make to the plan, the complaint alleges.

This conduct contravenes the plan’s express terms, which require forfeitures to be first used for administrative expenses, plaintiff ...