US Foods Sued Over 401(k) Forfeitures, Revamp ‘Confession’ (1)

US Foods Inc. was hit with a lawsuit claiming it illegally used 401(k) forfeitures for its own benefit and attempted to paper over this misconduct by amending its retirement plan document.

The food distributor used more than $13 million in 401(k) contributions forfeited by departing workers to fund its own mandatory plan contributions instead of using that money to pay the plan’s administrative expenses, two plan participants alleged. This contradicts the express terms of US Foods’ retirement plan and violates the Employee Retirement Income Security Act, they said in a complaint filed Thursday in the US District Court for the ...