Prohibited Transaction Claim Rejected
The judge dismissed the workers’ prohibited transaction claims, determining that reallocating forfeited funds in this manner does not constitute a prohibited transaction under ERISA.
A related failure-to-monitor claim survives only to the extent it ties to the remaining breach of prudence and breach of loyalty allegations.
Company Background and Representation
Fresenius Medical Care North America is headquartered in Waltham, Massachusetts, and operates approximately 3,700 dialysis clinics nationwide, employing about 112,000 workers, according to its website. Its parent company is based in Bad Homburg, Germany.
Counsel for the workers declined to comment. Representatives for Fresenius did not immediately respond to requests for comment.
The workers are represented by Paul M. Secunda of Walcheske & Luzi LLC and Jonathan M. Feigenbaum. Fresenius Medical Care North America is represented by Keri L. Engelman, Noah J. Kaufman and Mathew J. McKenna of Morgan Lewis & Bockius LLP.
The case is Heet et al. v. National Medical Care Inc. et al., case number 1:25-cv-11644, in the U.S. District Court for the District of Massachusetts.
As retirement plan litigation continues to ripple across corporate America, the Fresenius 401(k) Forfeiture Suit highlights a delicate balance — between adhering to plan terms and fulfilling the broader fiduciary duties imposed by federal law.
