Former employees of Bed Bath & Beyond Inc. (BBBYQ) reportedly filed a lawsuit against the committee responsible for overseeing its 401(k) retirement plan.
The ex-employees claim a loss exceeding $5 million from their MassMutual “guaranteed investment account,” which was believed to pose minimal risk, Reuters reported.
The MassMutual investment account suffered a 10% loss because rising interest rates hurt the value of its underlying investments, Reuters mentioned.
The workers allege that the Bed Bath & Beyond committee’s lack of tactfulness led to their suffering millions of dollars in losses following the bankruptcy of the home furnishings retailer.
The report added that the class action proposal, presented in the federal court of Newark, New Jersey, stemmed from Bed Bath & Beyond’s decision to terminate its 401(k) plan on August 1, roughly three months after the company’s filing for Chapter 11 bankruptcy protection.
Last month, a U.S. bankruptcy judge reportedly approved Overstock.Com, Inc. OSTK acquisition of the Bed Bath & Beyond brand name, intellectual property, and ecommerce platform.
Price Action: BBBYQ shares closed lower by 15.75% to $0.16 on Thursday.