Fresenius Medical 401(k) Forfeiture Suit Advances, Bucking Trend

Participants in Fresenius Medical Care North America’s 401(k) plan advanced their challenge to the company’s handling of plan forfeitures, after a Massachusetts federal judge aligned himself with the “minority position” on forfeiture claims.

Judge William G. Young on Monday greenlighted proposed class claims of fiduciary disloyalty and imprudence based on the decision by Fresenius—formally known as National Medical Care Inc.—to put forfeited 401(k) money toward its required plan contributions, instead of using those funds to pay administrative expenses.

Young, who described the choice of how to allocate forfeitures as a “zero-sum game,” said the plan participants adequately alleged that Fresenius ...