D. MASS.Court order
Massachusetts federal court rejects challenge to Trader Joe's 401(k) forfeitures but orders $1.2M fee award
U.S. District Judge William Young issued findings of fact and rulings of law following a six-day bench trial in an ERISA class action against Trader Joe's. The court rejected claims that Trader Joe's unlawfully used forfeited retirement funds to offset employer contributions and a claim over a poorly performing fund, but ruled for participants on claims that fiduciaries failed to monitor recordkeeping fees, awarding $1,187,221 in damages and interest.
Order (U.S. District Court for the District of Massachusetts) → · Reuters, Law360
Key points
- The judgment awards $715,264.00 in principal damages for recordkeeping fee overpayments plus $471,957.00 in prejudgment interest.U.S. District Court for the District of Massachusetts
- Judge Young applied the Massachusetts statutory 12 percent simple interest rate calculated from April 1, 2021, to September 28, 2026.U.S. District Court for the District of Massachusetts
- The court ruled for Trader Joe's on the forfeiture and employer-contribution offset claims and on a claim over a poorly performing fund.U.S. District Court for the District of Massachusetts
- The lawsuit represents the first case in a nationwide wave of retirement forfeiture suits to reach a completed trial.Reuters
- The class action on behalf of more than 40,000 retirement plan participants sought over $9 million in total damages.Reuters
Sources3 articles across 3 outlets
Law360
Reuters
U.S. District Court for the District of Massachusetts