Qualcomm Sued Over 401(k) Plan’s Use of Forfeited Worker Assets

Qualcomm Inc. mismanages its 401(k) plan by using money forfeited by workers to reduce the contributions it’s required to make to the plan, a former employee said in a proposed class complaint.

The lawsuit, filed Monday in the US District Court for the Southern District of California, centers on how Qualcomm uses the 401(k) account money forfeited by workers who leave the company after a short period.

Instead of using this money to benefit plan participants by reducing the plan’s administrative expenses, Qualcomm instead puts it toward the employer contributions it’s required to make to the plan, plaintiff Antonio Perez-Cruet ...