Intuit Worker Gets Green Light to Press 401(k) Forfeiture Suit

A former Intuit Inc. employee advanced her proposed class action challenging how the financial software company handles forfeitures in its workers’ 401(k) plan.

The lawsuit validly alleges that Intuit breached its fiduciary duties of loyalty and prudence under the Employee Retirement Income Security Act, Judge P. Casey Pitts of the US District Court for the Northern District of California said Monday. The worker’s allegations—that Intuit chose to use millions of dollars in forfeited 401(k) money to reduce the amounts it would otherwise have to contribute to the plan—plausibly suggest that Intuit didn’t act in the best interests of plan participants, ...