Bed Bath & Beyond $1.95M 401(k) ERISA Settlement

Participants in the 2023 Bed Bath & Beyond Inc. 401(k) Savings Plan who had their account modified due to a market value adjustment after the plan was terminated may qualify to claim a share of a $1.95 million class action settlement.

Bed Bath & Beyond Inc. agreed to pay $1,950,000 to settle a class action lawsuit alleging the company’s 401(k) savings plan committee, as well as Laura Crossen, chief accounting officer and interim chief financial officer of Bed Bath & Beyond Inc., failed to properly manage the plan in accordance with the Employee Retirement Income Security Act of 1974. The lawsuit specifically concerns the plan’s investment in the MassMutual Guaranteed Interest Account following its termination in 2023.

Who is eligible for a Bed Bath & Beyond payment?

Class members must meet the following criteria:

• They are a current or former Bed Bath & Beyond employee.
• They participated in the Bed Bath & Beyond Inc. 401(k) Savings Plan or are a surviving spouse or other beneficiary of a deceased participant.
• Their individual plan account was modified by any amount due to the market value adjustment applied to the plan’s interest in the MassMutual Guaranteed Interest Account after the company passed a resolution to terminate the plan in 2023.

The settlement administrator identified approximately 2,100 class members based on plan records.

How much is the 401(k) savings plan breakdown?

Pro rata payment: The amount each class member receives is determined by the proportion of the market value adjustment charged to their individual plan account.

How to claim an ERISA class action rebate

Eligible class members who want to receive their share of the settlement as a direct rollover to an individual retirement account or a qualified employer plan must download, print, complete and mail or email a PDF rollover form to the settlement administrator. The deadline is Oct. 9, 2025.

Settlement administrator's mailing address: Bed Bath and Beyond ERISA Settlement, P.O. Box 2005, Chanhassen, MN 55317-2005

Settlement administrator's email address: BedBathBeyondERISA@noticeadministrator.com

Eligible class members who do not submit a rollover form will receive payment by paper check. The settlement administrator already has the necessary information from plan records to identify these individuals. Those who believe their mailing address has changed since their participation in the plan should contact the settlement administrator.

$1.95 million Bed Bath & Beyond settlement fund breakdown

The $1,950,000 settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $650,000
• Attorneys' expenses: To be determined
• Service awards to class representatives: Up to $7,500 each
• Payments to eligible class members: Remainder of the fund

Important dates

• Rollover form deadline: Oct. 9, 2025
• Final approval hearing: Oct. 9, 2025

When is the 401(k) ERISA settlement payout date?

Payments will be distributed after the court grants final approval and any appeals are resolved.

Why is there a class action settlement ?

The class action lawsuit alleged the Bed Bath & Beyond Inc. 401(k) Savings Plan committee and CFO/CAO Laura Crossen failed to properly monitor the plan’s investment in the MassMutual Guaranteed Interest Account. The plaintiffs claimed this caused losses to participants when the plan was terminated.

The defendants deny all wrongdoing but agreed to settle to avoid the uncertainty, expense and burden of further litigation.

Sources

1. Class Notice
2. Settlement Website FAQ