UnitedHealth Seeks Dismissal of 401(k) Forfeiture Use Challenge

UnitedHealth Group Inc. fired back at a lawsuit challenging its handling of 401(k) forfeitures, telling a federal judge the case is an attempt to extract a windfall by challenging a longstanding and permissible practice.

Courts across the country have rejected efforts to hold employers liable for how they use the 401(k) money forfeited by departing workers, the health insurer said. UnitedHealth is in line with “more than sixty years of federal guidance,” and the employees attempting to challenge its practices in court haven’t suffered any losses that would give them standing to sue, the company said.

The proposed class action ...