A closely watched retirement benefits battle ended not with a bang, but with a judicial signature.
A federal judge in Virginia on Thursday formally dismissed an Employee Retirement Income Security Act case against Northrop Grumman Corp., marking the final step in what plaintiffs had positioned as a challenge to how the defense giant handled forfeited 401(k) funds.
The ruling caps what can now be described as the Northrop Grumman 401(k) Suit Dropping, following a series of earlier setbacks for the workers and a settlement of the lone remaining claim.
Court Signs Off on Dismissal With Prejudice
U.S. District Judge Anthony J. Trenga approved a stipulation of dismissal with prejudice, effectively closing the case brought by a proposed class of Northrop employees participating in the company’s savings plan.
The dismissal came after the parties resolved the final surviving issue — a statutory penalties claim under ERISA — in anticipation of a potential appeal to the Fourth Circuit. That appeal would have challenged Judge Trenga’s December decision that had already wiped out most of the lawsuit’s core allegations.
With the remaining claim voluntarily dropped, the case now exits the courtroom entirely.
