Federal court cases are a game, like chess. You file a complaint, you fight the inevitable motion to dismiss, and once you survive that, you either settle or take the chances with the case and see if the defendants settle later down the line.
ERISA attorneys front the money for these class action cases. They take the risk with the hopes of a quick settlement. If they can withstand a motion to dismiss, they are almost home. So until we see more and more cases dismissed, expect more class action cases for larger plans that used forfeitures to reduce contributions. It’s like shooting fish in a barrel until district judges get sick of them or the government eliminates reducing contributions as a forfeiture option.
