Bed Bath & Beyond Panel Dings Suit Over 401(k) Bankruptcy Losses

Bed Bath & Beyond Inc.'s 401(k) committee asked a federal judge to dismiss litigation over alleged plan losses tied to the retailer’s recent bankruptcy, saying the case’s legal theory would fault the company for failing to predict the future.

The proposed class action centers on a MassMutual guaranteed interest account offered by the retailer’s retirement plan, which was aimed at preserving assets and providing a fixed rate of return. Bed Bath & Beyond’s April bankruptcy filing caused the company’s contract with MassMutual to terminate, which plaintiffs Paul Harvey and Lela LaPlante say led to a market adjustment that wiped out ...