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Courts Continue Dismissal Trend in Forfeitures Cases
Miller & Chevalier
Nov. 21, 2025 "[A Texas district court found] that the plaintiffs' forfeitures theory could not stand where the forfeitures were used to reduce the employer's voluntary contributions consistent with the terms of the plan. The court noted that the use of forfeitures to reduce an employer's contribution instead of to defray administrative costs does not violate the duty of loyalty.... [In Mississippi, the district court] reasoned that because it is a 'fair and reasonable interpretation' of the plan document that Peco could either pay administrative expenses or offset employer contributions, Peco's 'use of the forfeitures to offset employer contributions did not violate the terms of the Plan.' " [Del Bosque v. Coca-Cola Southwest Beverages LLC, No. 25-1270 (N.D. Tex. Nov. 13, 2025); Brown v. Peco Foods, Inc., No. 25-0491 (S.D. Miss. Nov. 14, 2025)] MORE >> |
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