Nuvance Health Hit With Class Claims Over 401(k) Forfeitures

Nuvance Health Inc. is facing a proposed class action lawsuit from participants in the company’s 401(k) plan alleging it failed to properly use forfeitures to pay plan expenses.

Taylor Rose, a current plan participant, and Susan Moline, a former plan participant, filed a class action complaint Wednesday claiming the healthcare services company breached its fiduciary duties under the Employee Retirement Income Security Act.

The company’s retirement plan requires that forfeitures be used to pay participant expenses before being used to reduce Nuvance’s contributions. Nuvance allegedly reversed that order, and permitted Fidelity Investments Inc. to collect “excessive recordkeeping compensation from the ...