UBS Joins List of Employers Facing 401(k) Forfeiture Lawsuits

UBS AG was hit with a proposed class action saying the financial company mismanages its employees’ 401(k) plan by using forfeited money for its own benefit.

The case, filed Thursday in the US District Court for the District of New Jersey, is one of more than 50 lawsuits filed in the past two years challenging how large employers handle the unvested 401(k) money that can be forfeited when workers leave their jobs after a short period. The cases, which have spurred mixed results in court, say companies violate the Employee Retirement Income Security Act when they opt to ...