Judge Finds in Favor of Knight-Swift in 401(k) Forfeiture Case
The district court determined that the plaintiffs failed to state a viable ERISA claim, the latest action in a flurry of cases concerning the alleged mismanagement of forfeited assets.
A federal judge in Arizona has dismissed a class action lawsuit accusing Knight-Swift Transportation Holdings Inc. of misusing forfeited assets in its 401(k) retirement plan, rejecting claims that the truck–loading company violated the Employee Retirement Income Security Act by using the funds to offset company contributions,rather than to pay down plan expenses.
InJason Sievert et al., v. Knight-Swift Transportation Holdings Inc., U.S. District Judge Steven P. Logan, presiding in U.S District Court for the District of Arizona,ruled Tuesday that the plaintiffs—three current and former plan participants—failed to state a viable ERISA claim. The workers alleged Knight-Swift’s handling of forfeited assets breached its fiduciary duties and violated ERISA’s prohibited transaction rules.
A core issue in the case was whether Knight-Swift was bound by statements in its annual Form 5500 filings to the Department of Labor that forfeited assets “shall be used” to pay plan expenses.
The plaintiffs argued that those filings committed the company to covering administrative costs with forfeitures, and that by instead applying them to reduce employer contributions while charging expenses to participant accounts, Knight-Swift harmed employees.
But Logan sided with the company, finding that under ERISA, a written plan document, not external filings like a Form 5500, governs fiduciary obligations. The court held that the plan gave Knight-Swift broad discretion over how to allocate forfeited assets and that its actions complied with the plan’s terms and federal regulations.
“Plaintiffs simply have not shown that the Form 5500s created any binding legal obligation,” Logan wrote, emphasizing that enforcement over alleged inaccuracies in such filings falls to the Department of Labor, not private litigants.
Logan dismissed the case with prejudice, denying the plaintiffs an opportunity to amend their complaint.
The decision is “comforting to plan sponsors,” as it affirms their ability to continue longstanding administrative practices without fear that using forfeitures to offset contributions violates fiduciary duties, says Andrew Oringer,a partnerin andthe general counsel of the Wagner Law Group, whose practice includes fiduciary compliance.
However, Oringer notes that while the ruling is favorable to plan sponsors, it is only a district court opinion, with the potential for appeals and inconsistency across courts in different parts of the country.
“This is the kind of ruling that the defense bar, fiduciaries and plan sponsors will want,” Oringer says. “But what they really want is for this to become the trend in the courts.”
The ruling is part of a string of recent similar ERISA lawsuits challenging employers’ use of 401(k) forfeitures.
Meanwhile, in March, UnitedHealth Groupsettled for $69 milliona class action lawsuit involving fund selection for its 401(k) Savings Plan.
“If you get a settlement, if you get a decision or two on your side, that’s emboldening,” Oringer says. “But the moment the trend starts to go in the other direction, it starts to reverse that emboldening and to cause plaintiffs’lawyers to move on to the next idea.”
Knight-Swift did not immediately respond to a request for comment, nor did counsel for the plaintiffs.
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Edward Jones announces changes to executive team; Paul Mahon to retire from Great-West Lifeco; Lincoln Financial names two external wholesalers; and more.
Edward Jones is evolving its enterprise leadership team, effective June 1, the company announced. David Chubak will assume a new role as head of wealth management and field management. Lena Haas, currently responsible for WMAS, will retire at the end of this year. David Gunn, who currently leads the Canada business unit, will also assume responsibility for the US business unit.
Kristin Johnson, who has served as chief transformation officer, will assume the newly created role of chief operating officer. Chief financial officer Andy Miedler will take on responsibility for leading the data and digital teams as the current head of digital, data and operations, Frank LaQuinta, will retire at the end of 2025.
“It’s a new year for Edward Jones – our first as a financial planning firm. We’ve been readying ourselves for this chapter in our 103-year-old growth story by evolving to attract and serve new and different types of clients through experiences, products and services, and technology that meet their unique needs,” said Penny Pennington, Managing Partner, Edward Jones, in a statement. “The strength of our firm and our ambition to more deeply serve our clients, colleagues and communities gives us incredible momentum to be the place North Americans go for advice.”
Paul Mahon to Retire From Great-West Lifeco
Effective July 1, Paul Mahon will retire as president and CEO of Great-West Lifeco and Canada Life. David Harney will succeed him. Mahon will act as a senior adviser until early 2026 to support the transition.
While Mahon was CEO, Lifeco repositioned its portfolio of businesses, including the amalgamation of three brands into Canada Life, and the launch and build-out of Empower in the United States.
“Paul’s contributions to our organization have been extraordinary,” said Jeffrey Orr, Chair of Lifeco and Canada Life’s Board of Directors, in a statement. “Under his leadership the company has been repositioned and strengthened, achieving record performance and delivering lasting value for our shareholders. On behalf of the Board, management, colleagues, and all those associated with our companies, I thank him for his leadership, vision, and impact.”
Harney has been with the organization for more than 35 years, holding a wide range of progressively senior roles. He was appointed CEO of Irish Life in 2016; president and chief operating officer, Europe for Great-West Lifeco in 2020; and in 2024 broadened his responsibilities to include oversight of Lifeco’s reinsurance business, the company said.
Lincoln Financial Names Two External Wholesalers
Lincoln Financial Retirement Plan Services has added two external wholesalers to the team. Both are responsible for maintaining and exceeding sales and growth goals, as well as nurturing existing relationships and expanding to new firms and stakeholders in their territory, the firm said.
Paul Guglielmo
Paul Guglielmo, reporting to Paul Rankin, joined to take on the Connecticut territory. He started March 17, joining Lincoln with 10 years of financial services experience, most recently at John Hancock Retirement.
James Hansen, who joined April 7, is responsible for Florida, aside from South Florida. Reporting to Vince Rainforth, James joined Lincoln with 10 years of retirement plan sales experience and most recently with Equitable Retirement.
James Hansen
“Paul and James are fantastic additions to Lincoln Financial’s Retirement Plan Services team,” said Joe Mrozek, VP, National Sales Manager at Lincoln Financial, in a statement. “They each have a proven track record that will help us continue to deepen relationships and drive future growth in these territories.”
MissionSquare Retirement Appoints Tom McAndrews Chief Legal Officer
Tom McAndrews has been named chief legal officer at MissionSquare Retirement, reporting to the firm’s chief executive officer and president, Andre Robinson. In this new role, McAndrews will oversee MissionSquare’s Corporate Affairs Department, including legal, compliance, government affairs, research, and risk management functions, the firm said.
McAndrews has been part of the MissionSquare team for more than 16 years, since 2008. Before joining MissionSquare, McAndrews held the position of counsel with O’Melveny & Myers, LLP, where he represented clients in securities-related enforcement proceedings before the U.S. Securities and Exchange Commission, U.S. Department of Justice, the New York Stock Exchange, and the Financial Industry Regulatory Authority.
“I am thrilled that Tom will take on this expanded role as CLO for our organization,” said Robinson, in a statement. “Tom’s leadership and dedication to our vision as a company have been instrumental to our growth over the years and will undoubtedly contribute to our continued success as we move forward. This is an exciting next chapter for Tom and our entire team, and I look forward to being on this journey together.”
Advisors Asset Management Announces CEO Transition
Investment solutions provider Advisors Asset Management announced that Cliff Corso, current president and chief investment officer, will become president and chief executive officer, effective May 9, 2025, following the retirement of Scott Colyer. Corso will remain as CIO and assume Colyer’s responsibilities as the head of the firm, the firm announced.
Colyer will remain with AAM as a consultant for a 12-month period to support a smooth transition, while also retaining his status as a shareholder and continuing his role on the board of directors.
Corso brings a proven, 35-year reputation for strategic leadership, AAM said. Before being appointed president and CIO of in 2021, Corso held the roles of CEO, CIO and Executive Chairman, North America at Insight Investment.
Caroline M. Lee Joins Seward & Kissel’s New York Office
Caroline M. Lee
Caroline M. Lee has joined the New York office of law firm Seward & Kissel LLP as a partner in its corporate group. Lee, who joins from Dechert LLP, has extensive experience in complicated financings designed to provide fund-level leverage to facilitate and support investment activities. Lee’s practice involves advising various financial sponsors, asset managers, business development companies and other financial institutions on a wide variety of fund financing transactions.
“Caroline’s expertise in fund finance significantly enhances our capabilities,” said Nick Katsanos, partner and chair of the firm’s corporate group, in a statement. “She brings strategic insight and proven experience that will deliver real value to our clients.”
JPMAM Adds Former Treasury Official
Geng Ngarmboonanant
Geng Ngarmboonanant joined JP Morgan Asset Management’s multi-asset solutions business in a new role as a managing director specializing in global business and investment strategy, the firm announced. He will help shape investment strategy through macroeconomic and policy research, and partner with clients to design tailored investment solutions, as well as drive business strategy and product innovation as part of the business leadership team.
Based in New York, Geng reports to Zachary Page, head of multi-asset solutions for the Americas. Geng joins J.P. Morgan from the U.S. Department of the Treasury, where he served as deputy chief of staff to Secretary Janet L. Yellen.
In a statement, Jamie Kramer, chief investment officer and global head of multi-asset solutions, said ”We are thrilled to welcome Geng to J.P. Morgan. His extensive background in economic policy will significantly enhance our ability to provide clients with deep, actionable insights. With the evolving global economic landscape, Geng’s expertise will be invaluable in helping our clients understand and navigate a period of heightened volatility and uncertainty.”
Douglas Gee Takes Expands Role at Northern Trust
Northern Trust named Douglas Gee global head of sales for asset servicing, effective July 1, replacing Jon Dunham, who is retiring. Gee will report to Northern Trust Asset Servicing President Teresa Parker and will be responsible for driving global sales strategy, accelerating new business revenue growth and expanding awareness of Northern Trust’s capabilities, the company said.
Gee joined Northern Trust in 2008 to lead its asset owner business development for the UK and Ireland. He currently manages the Europe, Middle East, Africa and Asia-Pacific business development teams. He will remain based in London, adding business development responsibilities for the Americas to his remit.
“Douglas has been instrumental in driving new business growth across both the EMEA and APAC regions, focusing on the evolving investment operating model challenges of many new and prospective clients,” Parker said, in a statement. “With his extensive experience and proven track record in driving sales growth, Douglas is poised to lead our business development organization into its next phase of success, aligning with our strategic objectives and commitment to deliver client-centric solutions.”
