Bed Bath & Beyond's 401(k) committee has obtained preliminary court approval of its $1.95 million settlement of a class action lawsuit under the Employee Retirement Income Security Act (ERISA). The plan participants had accused the company of mismanaging its retirement plan, in which 2,100 employees had invested before it terminated the plan and declared bankruptcy. The parties reached a proposed settlement in December and divulged its details in February.
The case is Harvey et al. v. Bed Bath & Beyond Inc. 401(k) Savings Plan Committee et al., Case Number 2:23-cv-20376, U.S. District Court for the District of New Jersey.
The New Jersey federal district court gave preliminary approval to the proposed settlement. It appointed attorneys from Engstrom Lee LLC and Morgan & Morgan PA as class counsel for the settlement class. The class includes some 2,100 employees and their beneficiaries. A fairness hearing on the settlement is scheduled for October.
Named plaintiffs and class representatives Paul Harvey, Meryl Eichenbaum, and Roxanne Kuzowsky claimed the plan committee violated ERISA by failing to remove underperforming investment options from the 401(k) plan.
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