Federal Courts Rule on ERISA Forfeiture Claims Across 13 States

In 2025, ERISA forfeiture litigation has seen significant developments, including numerous lawsuits challenging the use of forfeiture dollars in retirement plans and varying court rulings on motions to dismiss, with plan sponsors prevailing in over 70% of cases. Notably, the Ninth Circuit is set to provide pivotal guidance on these issues through appeals in several dismissed cases. Concurrently, a federal court in Illinois denied a motion to dismiss in a case alleging breaches of fiduciary duty regarding the imprudent allocation of forfeiture funds. Separately, civil forfeiture abuses remain a critical concern, exemplified by Brian Moore's case where the 11th Circuit ruled he is entitled to compensation for legal fees after his cash was seized without criminal charges; such cases highlight the challenges faced by individuals lacking court-appointed counsel. These legal challenges underscore the need for safeguards against forfeiture abuses and the complexity of navigating forfeiture claims, as most cases resolve without judicial involvement due to prohibitive legal costs. Together, these developments emphasize ongoing legal scrutiny and evolving jurisprudence around forfeiture practices in both retirement plan and civil asset contexts.