UnitedHealth 401(k) Forfeiture Would-be Class Suit Moves Forward

A lawsuit accusing UnitedHealth Group Inc. of mismanaging nearly $20 million in forfeited 401(k) contributions is moving forward after a Minnesota federal judge declined to dismiss key claims in the proposed class action.

The healthcare giant may have acted imprudently under federal benefits law by choosing to use the 401(k) money forfeited by departing employees to make its own contributions to the plan, instead of using this money to lower the administrative expenses charged to workers, Judge Eric C. Tostrud said Monday for the US District Court for the District of Minnesota.

The lawsuit plausibly alleges that United’s benefits committee ...