Lighting Company Must Face 401(k) Forfeiture Mishandling Claims

An automotive lighting systems supplier must face claims it mishandled forfeited money in its 401(k) plan, but it defeated key allegations tied to the tobacco penalty in its employees’ health plan.

Judge Colin Stirling Bruce allowed a former North American Lighting Inc. worker to advance proposed class claims that the company breached its duties under federal benefits law by using unvested 401(k) money forfeited by departing workers to make its mandatory plan contributions.

The NAL defendants “never actually contest” the argument that they weren’t acting in workers’ best interests when they decided to use the money this way instead of ...