Elevance Health Is Latest Employer Sued Over 401(k) Forfeitures

Elevance Health Inc. mismanages its employees’ retirement plan by using forfeited 401(k) money for its own benefit instead of using it to lower workers’ costs, according to a proposed class action complaint.

The lawsuit, filed Thursday in the US District Court for the Southern District of Indiana at Indianapolis, is the latest in a burgeoning number of cases that have made similar claims against large corporations including Clorox Co., HP Inc., and Kaiser Foundation Health Plan Inc. with varying degrees of success.

The lawsuit accuses Elevance, the health insurer previously known as Anthem Inc., of improperly using 401(k) forfeitures ...