HCA Healthcare Sued Over Handling of Forfeited 401(k) Plan Money

HCA Healthcare Inc. was hit with a proposed class action saying the Nashville-based health-care system mismanages the 401(k) contributions forfeited by departing employees.

HCA’s retirement plan gives the company discretion over how to use forfeitures, and it consistently uses this money to reduce the amount it would otherwise have to contribute to the plan, according to a complaint docketed Tuesday in the US District Court for the Middle District of Tennessee.

By using forfeitures to benefit itself, instead of using them to benefit plan participants by reducing their administrative expenses, the company breaches its fiduciary duty to act prudently and ...