Northeast Grocery $225,000 401(k) Class Action Settlement

Individuals who participated in the Northeast Grocery 401(k) plan, the Tops Markets LLC 401(k) retirement savings plan, the Price Chopper associate 401(k) plan or the Tops Markets LLC 401(k) savings plan for Union Associates at any time between Jan. 1, 2018, and Aug. 5, 2026, may be eligible to claim a cash payment from a class action settlement.

Northeast Grocery Inc. agreed to pay $225,000 to resolve a class action lawsuit alleging violations in the management and administration of its employee 401(k) retirement plans, including claims of prohibited transactions and breaches of fiduciary duty under the Employee Retirement Income Security Act.

Who are the class members?

The class includes individuals who participated in any of the following retirement plans during the class period from Jan. 1, 2018, through Aug. 5, 2026:

• Northeast Grocery 401(k) plan
• Tops Markets LLC 401(k) retirement savings plan
• Price Chopper associate 401(k) plan
• Tops Markets LLC 401(k) savings plan for union associates

The class also includes:

• Any beneficiary of a deceased person who participated in the plans during the class period
• Any alternate payee of a person subject to a qualified domestic relations order who participated in the plans during the class period

How much is the payout?

The total settlement fund is $225,000. After deductions for attorneys’ fees, litigation expenses, service awards to the named plaintiffs and administrative costs, the settlement administrator will distribute the remaining amount to eligible class members.

The administrator will then calculate each class member’s payment based on their account balances in the plans during the class period. The calculation process is as follows:

• The settlement administrator will determine each class member’s account balance as of Jan. 1, 2018, and as of Dec. 31 for each subsequent year through Aug. 5, 2026. For those who left the plan during the class period, the settlement only includes the years they participated.
• The administrator totals these annual balances to create a “balance” for each class member.
• The administrator totals all class members’ balances.
• The administrator determines each class member’s share of the net settlement amount by dividing their individual balance by the total of all balances then multiplying it by the net settlement amount.
• If a class member’s calculated share is less than $25, they will not receive a payment. The administrator will reallocate those amounts among other eligible class members so the minimum payment is $25.

No action needed to receive compensation

Eligible class members do not need to file a claim. The settlement administrator will automatically mail a check to each eligible class member at their last known address on file with the plans.

Former participants who have not updated their address should contact the settlement administrator to ensure they receive payment.

Settlement administrator’s mailing address: Northeast Grocery 401(k) Settlement, P.O. Box 2007, Chanhassen, MN 55317-2007

Settlement administrator’s phone number: 888-429-2413

Settlement administrator’s email address: NortheastGrocery401kSettlement@noticeadministrator.com

Payout options

The settlement administrator will mail checks to the address on file. Checks are valid for 180 days from the date of issue. iRS rules consider the payments “restorative payments.”

$225,000 settlement fund

The $225,000 settlement fund will cover:

• Administrative expenses: Up to $15,000
• Attorneys’ fees: Up to $75,000
• Attorneys’ expenses: Up to $10,000
• Service awards to class representatives: Up to $2,500 each for four named plaintiffs ($10,000 total)
• Payments to approved class members: Remainder of the fund

Important dates

• Fairness hearing: Dec. 1, 2026

When is the Northeast Grocery 401(k) settlement payout date?

The settlement administrator will issue payments after the court resolves any appeals and grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged Northeast Grocery Inc. and its administrative committee failed to properly manage and monitor the 401(k) plans. Specifically, the complaint alleges the company did not:

• Investigate alternative investment options
• Monitor performance
• Control investment advisor costs
• Monitor recordkeeping fees

It also claims Northeast Grocery breached its duty of loyalty and engaged in prohibited transactions.

The defendants denied all wrongdoing but agreed to settle to avoid further litigation costs and uncertainty.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ
4. Important dates