Schlichter’s Ford Suit Tests New Tactic for 401(k) Forfeitures

Schlichter Bogard LLC’s latest ERISA lawsuit against Ford Motor Co. illustrates a potential new frontier in retirement plan litigation as courts have hesitated to embrace the onslaught of cases centering on the fate of 401(k) contributions forfeited by departing workers.

The May 8 lawsuit accuses Ford of paying its 401(k) service providers with plan assets in violation of written terms requiring the company to either cover these costs itself or else pay them using plan forfeitures. Schlichter—the St. Louis-based firm known for leading the charge on 401(k) fee litigation, spearheading high-profile and novel ERISA cases, and securing multimillion-dollar settlements with ...