John Hancock Wrongly Keeps Foreign Tax Credits, 401(k) Plan Says

A new lawsuit accuses John Hancock Life Insurance Co. of improperly pocketing foreign tax credits that actually belong to the 401(k) plans that hold the company’s variable annuity contracts.

The proposed class action, filed March 25 by the trustees of a law firm’s 401(k) plan, says these foreign tax credits are assets of the 401(k) plans that contract with John Hancock. The company was required under the Employee Retirement Income Security Act to pass these credits along to the plans, according to the complaint.

The lawsuit seeks class treatment for “thousands” of employee benefit plans that offer John Hancock variable ...