Pearson Education Workers Sue Over 401(k) Fees, Forfeitures (1)

Pearson Education Inc. is accused in a lawsuit filed Wednesday of mismanaging its employees’ retirement plan by overpaying for managed account services and improperly using money forfeited by departing employees.

The proposed class action, filed in the US District Court for the Southern District of New York, says Pearson wrongly benefited itself at the expense of its workforce by using 401(k) forfeitures to reduce the amount of money it would otherwise have to contribute to the plan, instead of using that money to cover administrative expenses. These missteps cost the plan at least $12 million between 2018 and 2023, three ...