JPMorgan Beats 401(k) Forfeiture Challenge by Citing Plan Terms

JPMorgan Chase & Co. won dismissal of a proposed class action challenging how it uses forfeited money in its 401(k) plan, when a California federal judge said the company properly followed the plan’s terms.

The JPMorgan plan authorizes the company to use 401(k) forfeitures in two ways: to reduce the contributions it’s required to make to the plan, or else to pay the portion of administrative expenses not paid by the plan itself, Judge Josephine L. Staton said. The “only reasonable interpretation” of the plan’s language is that it “allows Defendants to use forfeited amounts to pay JPM’s share, not ...