Icon Clinical Sued Over Handling of Forfeitures in 401(k) Plan

Two former Icon Clinical Research LLC employees filed a proposed class action challenging how the medical researcher manages the 401(k) contributions forfeited by departing workers.

Icon improperly used millions of dollars worth of 401(k) forfeitures to make its own contributions to the plan instead of using this money to reduce workers’ administrative expenses, the employees said in a complaint filed Wednesday in the US District Court for the Eastern District of Pennsylvania. This violates the terms of Icon’s plan, which requires forfeitures to be first put toward administrative expenses, and constitutes a fiduciary breach under the Employee Retirement Income Security ...