U.S. District Court for the Northern District of California Dismisses 401(k) Forfeiture Suit with Prejudice
Litigation attorneys Todd Wozniak, Lindsey Camp and Monica Perkowski co-authored an article featured in the Employee Benefit Plan Review discussing a significant federal court decision involving Employee Retirement Income Security Act of 1974 (ERISA) litigation. The article analyzes the U.S. District Court for the Northern District of California's dismissal with prejudice of a 401(k) forfeiture lawsuit in Hutchins v. HP Inc., which the authors say reaffirmed the importance of clear plan provisions governing the use of forfeited employer contributions. In its opinion, the court emphasized that fiduciary duties under ERISA require plan administrators to provide the benefits promised by plan documents — and that longstanding regulatory guidance supports using forfeitures to offset employer contributions — offering key insights for employers and fiduciaries to mitigate litigation risks.
The authors also published a Holland & Knight alert on this topic.