Trader Joe’s Fails to Avoid Trial Over Use of 401(k) Forfeitures

Trader Joe’s Co. was denied its bid to avoid trial on allegations that it mishandled cash left in departing employees’ 401(k) plans.

Judge William G. Young on Wednesday denied the retailer’s request for partial summary judgment on the forfeiture claims raised in a class action brought by employees, which is set to go to trial May 4. The suit in the US District Court for the District of Massachusetts alleged Trader Joe’s used millions of dollars in forfeitures to offset the company’s contributions, rather than using the funds to pay the plan’s recordkeeping and other costs to reduce fees charged ...