ST. LOUIS — A new class action lawsuit accuses Charter Communications of violating federal law by improperly handling funds in its employee 401(k) plan, potentially costing participants millions of dollars in lost benefits.
John Pitts and Maria Jimenez filed the lawsuit for all affected employees, alleging that Charter and several of its executives breached their fiduciary duties under the Employee Retirement Income Security Act (ERISA), according to a complaint filed Feb. 12 in U.S. District Court for the Eastern District of Missouri.
According to the complaint, Charter failed to use forfeited plan assets to cover administrative costs, as required by the plan’s terms and instead used those funds to reduce its own financial obligations.
Prior to an amendment set to take effect on Jan. 1, the plan explicitly required that forfeited assets be used first to pay administrative expenses.
Any remaining funds could then be used to offset Charter’s employer contributions, the complaint states.
However, the lawsuit claims that Charter ignored this mandate, instead using the forfeited assets to subsidize its own contributions while forcing employees to cover administrative fees from their individual accounts.
This alleged misallocation resulted in diminished retirement savings for thousands of plan participants, according to the suit.
The complaint further asserts that Charter amended the plan only after receiving a pre-suit request for documents from Jimenez, suggesting the company acted in anticipation of legal action.
The 2025 amendment removes the requirement that forfeited assets be used for administrative costs first, a move plaintiffs argue is an attempt to cover up past violations.
Under ERISA, plan fiduciaries are held to strict standards of loyalty and prudence, requiring them to act solely in the best interests of participants.
The lawsuit contends that Charter and its executives failed to meet this obligation, prioritizing corporate financial gain over employees’ retirement security.
By not properly allocating forfeited assets, the plaintiffs argue, Charter enriched itself while unlawfully shifting costs onto employees.
The lawsuit seeks to recover losses suffered by the plan, restore funds to participants’ accounts, and impose other equitable and injunctive relief.
Plaintiffs also seek accountability from Charter’s leadership for alleged breaches of fiduciary duty.
The plaintiffs are represented by James J. Rosemergy of Carey, Danis & Lowe in St. Louis; and Steven A. Schwartz and Robert J. Krisner Jr. of Chimicles Schwartz Kriner & Donaldson-Smith.
Attorneys did not respond to requests for comment before publication.
This case closely mirrors another class action lawsuit filed against Charter Communications earlier this month, also in the U.S. District Court for the Eastern District of Missouri.
In that case, plaintiffs Patrick O’Donnell, Wayne Saffold and Mark Papenfuss similarly alleged that Charter violated ERISA by misusing forfeited plan assets to reduce its employer-matching contributions rather than covering administrative costs as required.
That lawsuit contends that Charter's actions resulted in unjust enrichment at the expense of employees’ retirement savings.
The plaintiffs seek damages, restoration of plan losses, and an injunction against further ERISA violations.
If found liable, Charter could face substantial financial consequences in both cases.
U.S. District Court for the Eastern District of Missouri case number: 4:25-cv-00178