HP sued over use of forfeited 401K dollars
Lawsuit filed on behalf of plaintiff Paul Hutchins in a US federal court in northern California, claims HP has taken forfeited funds – money the IT giant pledged to contribute to workers' 401(k) pots but unclaimed because employees left before their vesting periods – and used the money for its own
benefit rather than keeping the cash in the staff retirement plan.
- The complaint, citing ERISA's "anti-inurement" provision, claims that such funds cannot be used to pay current corporate liabilities.