Thermo Fisher Win in 401(k) Forfeiture Suit Adds to Court Split

Thermo Fisher Scientific Inc. defeated litigation over its handling of forfeited money in its 401(k) plan, adding to a growing disagreement among federal courts grappling with a novel legal theory.

The case’s allegations of fiduciary breach rest on a legal theory that’s “too broad to be plausible,” Judge Todd W. Robinson said. The Employee Retirement Income Security Act doesn’t create an “unqualified duty” for plan sponsors to maximize participants’ financial benefits or pay their administrative expenses, Robinson said, dismissing claims that Thermo Fisher breached its fiduciary duties under the statute by putting 401(k) money forfeited by departing workers toward the ...