Northrop Grumman Hit With Another Schlichter 401(k) Plan Lawsuit

Northrop Grumman Corp. is facing new litigation over its 401(k) plan from the St. Louis-based law firm that negotiated a pair of multi-million dollar settlements over the plan in prior lawsuits.

The proposed class action, filed May 2 by four former Northrop employees, accuses the aerospace company of mishandling the $36 billion plan by putting forfeited 401(k) money toward the matching contribution it’s required to make, instead of using the funds to reduce administrative expenses. Doing so violates both the terms of the plan and the Employee Retirement Income Security Act, which requires plan fiduciaries to act prudently and ...