U.S. Ninth Circuit Skeptical of HP Bid to Revive 401(k) Forfeiture Lawsuit.

HP Inc. faced sharp scrutiny from the Ninth Circuit on Wednesday as the company attempted to revive a lawsuit over its handling of forfeited 401(k) funds, a case with major implications for employers and retirement plan fiduciaries nationwide. Plaintiffs allege HP violated ERISA by using unvested 401(k) forfeitures to offset the company’s future matching contribution obligations instead of covering plan administrative expenses that could benefit employees. During oral arguments, appellate judges appeared unconvinced that the plaintiffs had sufficiently demonstrated a breach of fiduciary duty, signaling potential difficulty for similar 401(k) forfeiture lawsuits emerging across the country. The closely watched case could shape future legal standards for how companies manage retirement plan forfeitures and fiduciary responsibilities under federal benefits law.