Forfeit This! What 401(k) Plan Sponsors Need To Know About Forfeitures

Ary Rosenbaum - The Rosenbaum Law Firm P.C.
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One of my favorite movie scenes is from Donnie Brasco. You’ve got Al Pacino’s character, Lefty, leading his crew around Brooklyn, smashing open city parking meters with sledgehammers for a few dollars in dimes. The visual is absurd—seasoned wiseguys tearing apart public property for pocket change, just to meet their weekly take. But you know what? That scene always reminded me of a particular breed of ERISA litigators: constantly prowling for angles, looking to pry open something seemingly insignificant—like forfeitures—for their own payday. It’s not about protecting participants; it’s about finding any opportunity, no matter how small or laughable, to file a class action. Like busting open a parking meter for loose change, they’ll take whatever they can get, and 401(k) forfeitures are the next round of meters getting smashed.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Ary Rosenbaum - The Rosenbaum Law Firm P.C.

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Ary Rosenbaum - The Rosenbaum Law Firm P.C.
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