Capital One Strikes Deal in 401(k) Plan Forfeiture Use Lawsuit

Capital One Financial Corp. reached a settlement in a proposed class action saying it mismanages its employees’ 401(k) plan by using forfeited contributions for its own benefit.

The parties reached an agreement after mediation and plan to submit details of their deal for preliminary court approval by Nov. 10, they said in a status report filed Thursday in the US District Court for the Southern District of New York.

The year-old lawsuit is among the dozens of recent cases saying employers violate federal benefits law when they opt to use the unvested 401(k) contributions forfeited by departing workers to reduce ...