WPP Group Sued Over Retirement Plan’s Handling of Forfeitures

Two former WPP Group USA Inc. employees filed a proposed class action saying the advertising and public relations company mismanaged their retirement plan by using money forfeited by departing employees to offset its contribution obligation.

WPP used millions of dollars in 401(k) forfeitures to reduce the money it would otherwise have to contribute to the plan over the past several years, plaintiffs Rafael Polanco and Monique Johnson said in the Dec. 13 complaint. By using this money to benefit itself, instead of using it to reduce the administrative expenses charged to workers, WPP breached its fiduciary duties under the ...