Wells Fargo Is Latest Company Sued Over 401(k) Forfeiture Usage

Wells Fargo & Co. was sued Tuesday by an ex-employee who says the bank mismanages its 401(k) plan by using assets forfeited by former workers for its own financial benefit.

The proposed class action, filed in the US District Court for the Northern District of California, challenges Wells Fargo’s alleged practice of using forfeited 401(k) assets to reduce the contributions it would otherwise have to make to the plan. By using these forfeitures for its own benefit, instead of putting them toward the administrative fees charged to plan participants, Wells Fargo put its own interests above those of its ...