HP Employees’ 401(k) Plan Forfeiture Challenge Dismissed Again

HP Inc. again defeated proposed class claims accusing the technology company of mismanaging the 401(k) funds forfeited by departing employees.

The lawsuit challenges HP’s decision to put 401(k) forfeitures toward the employer contributions it must make to its retirement plan. Judge Beth Labson Freeman rejected the idea that this practice violates the Employee Retirement Income Security Act, saying the plan participants’ legal theory ignores “decades of settled law” and incorrectly suggests that ERISA fiduciaries are required to “maximize pecuniary benefits” at every turn.

“Plaintiff seeks both to stretch the fiduciary duties of loyalty and prudence beyond the law and to ...