Bed Bath & Beyond Bankruptcy Drives 401(k) Suit Over Losses (1)

Two former Bed Bath & Beyond Inc. employees on Thursday filed a proposed class action saying the company’s recent bankruptcy triggered the termination of one of their 401(k) investments, driving losses of more than $5 million.

The lawsuit, filed in the US District Court for the District of New Jersey, 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 ...