Market Basket to Pay $17.5M to Settle Employee Lawsuit - NBC10 Boston

gandenganaja.blogspot.com

The company that operates Market Basket has agreed to pay $17.5 million to settle a class action lawsuit that claims it mismanaged its retirement plan for employees by making super-conservative investments.

Demoulas Super Markets Inc. has also agreed to change the way it manages its plan, according to a proposed settlement filed in federal court in Boston earlier this month. Going forward, no more than 10% of the plan’s assets would be held in cash or cash equivalent accounts, and the plan would increase its annual return target by 100 basis points, or 1%.

An ex-Market Basket employee named Paul Toomey brought the proposed class action last year, accusing the Tewksbury-based chain of employing a “wildly unsuccessful” investment strategy. The company aimed to put 70% of the plan’s assets in fixed-income accounts and used a one-size-fits-all approach for all employees regardless of age, the lawsuit said. At one point, about two-thirds of the plan’s assets were allegedly in cash accounts that earned .05% or less in interest.

This story first appeared in the Boston Business Journal.

Let's block ads! (Why?)

"employee" - Google News
December 01, 2020 at 08:26AM
https://ift.tt/2KYXJGJ

Market Basket to Pay $17.5M to Settle Employee Lawsuit - NBC10 Boston
"employee" - Google News
https://ift.tt/3c4ygEc
https://ift.tt/2W5rCYQ

Bagikan Berita Ini