Lithia Motors Sued Over 401(k) Forfeitures, ‘Opaque’ Investments

Automotive dealer Lithia Motors Inc. was hit with a proposed class action saying its workers’ retirement plan is plagued by high fees, mishandled forfeitures, and a lack of candor.

Lithia put more than $17 million in 401(k) money forfeited by departing workers toward its own required plan contributions, instead of using these amounts to lower administrative costs, a former employee said in a complaint filed Thursday in the US District Court for the Central District of California. The company also failed to rein in the plan’s excessive administrative fees, and it unwisely moved retirement assets from “transparent, SEC-regulated mutual funds” ...