Northeast Grocery, the parent company of Price Chopper/Market 32 and Tops supermarkets, is facing a lawsuit for allegedly mishandling the 401(k) retirement plans of its employees. Filed in U.S. District Court in Albany in mid-January, the legal action accuses the conglomerate of not properly managing mutual fund fees within these plans, leading to lower returns for the retirees.
The lawsuit seeks to gain class-action status, which would open the door for more employees to join in. It claims that the company’s oversight committee allowed the selection of mutual funds with excessively high fees and underperforming records, negatively impacting employees’ retirement savings.
Despite the serious allegations, Price Chopper/Market 32 has refrained from commenting on the ongoing lawsuit. The litigation highlights concerns over the management of the 401(k) plans, which, as of 2021, held investments worth over $500 million for tens of thousands of Northeast Grocery employees.
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