Market Basket Chain Settles Suit Over 401(k) Investment Strategy

DeMoulas Super Markets Inc., which operates New England grocery chain Market Basket, will settle a proposed class action claiming it forced employees to invest their retirement savings in a fixed-income fund that earned minuscule returns and provided little opportunity for growth, the parties told a Massachusetts federal judge on Tuesday.

The deal resolves allegations that DeMoulas required all the participants in its profit-sharing plan—more than 10,000 people—to invest their entire account balances in a single fund that primarily held domestic fixed income options earning close to nothing. The plan at one point had about two-thirds of its assets—more than $400 ...