Qualcomm Is First Employer Ordered to Defend 401(k) Forfeitures

Qualcomm Inc. must defend how it manages 401(k) assets forfeited by former employees, a California federal judge said in the first substantial decision addressing a new series of ERISA cases targeting several large companies.

Federal law requires retirement plan fiduciaries to act “solely in the interest of the participants” and for the “exclusive purpose” of providing them with benefits, Judge Roger T. Benitez said. The lawsuit, which says Qualcomm used forfeited 401(k) assets to reduce the money it would otherwise have to contribute to the plan instead of using it to lower workers’ expenses, plausibly alleges that Qualcomm put its ...