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Amazon sued by employees for mismanaging $350M in forfeited 401(k) funds

The online retailer has been hit with a class action lawsuit, alleging it violated its ERISA fiduciary duties by using forfeited 401(k) funds to offset the company's own contributions instead of reducing administrative fees for over 20,000 participants.

By Lynn Cavanaugh | January 03, 2025 at 12:05 AM
(AP Photo/Elaine Thompson, File)

Amazon is the latest employer to face a class action lawsuit over misuse of 401(k) funds, alleging the company used nearly $350 million of dollars in retirement plan contributions forfeited by employees to offset its own contributions, rather than to reduce plan administrative fees, violating its fiduciary duties under federal law.

In 2024, numerous class action 401(k) lawsuits have been filed by plan participants over misuse of forfeited assets from former employees, including Bank of America, Wells Fargo, Siemens and Nordstrom.

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