Tenet Healthcare Targeted in Latest 401(k) Forfeiture Lawsuit

A Tenet Healthcare Corp. employee filed a proposed class action accusing the health-care services company of mismanaging its workers’ 401(k) plan by using unvested, forfeited contributions for its own benefit.

Tenet is accused of prioritizing its own financial interests over employees’ retirement savings by using the 401(k) contributions forfeited by departing workers to reduce the money it’s required to contribute to the plan, instead of using this money to lower the plan’s administrative fees. This practice allegedly saved Tenet more than $28 million between 2019 and 2023, according to a complaint filed Thursday in the US District Court for the ...