Huntington Ingalls Sued Over Forfeiture Usage in 401(k) Plan

Huntington Ingalls Industries Inc. was hit with a proposed class action Friday by a former employee who says the military shipbuilder mismanages its 401(k) plan by using forfeited contributions for its own benefit.

The lawsuit is among dozens of recent cases accusing employers of wrongly putting the unvested 401(k) contributions forfeited by departing workers toward the amounts they’re required to contribute to the plan, instead of using them to reduce workers’ expenses. Rulings in these cases, which also target Meijer Inc., Verizon Communications Inc., and Cigna Group, have largely favored employers, and the US Labor Department ...