Plaintiff’s Severance Agreement Doesn’t Stop ESOP Lawsuit
The defendants’ motion for summary judgment, based on the release of claims and their contention that the plaintiff didn’t suffer an injury, was denied.
The defendants’ motion for summary judgment, based on the release of claims and their contention that the plaintiff didn’t suffer an injury, was denied.
The participants claim they were mislead and intimidated to sell their shares back to the company at a price significantly lower than fair market value.
A federal district court judge explained how the plaintiff actually benefited after the stock shares were purchased, so she suffered no harm.
Fiduciaries were ordered to restore $6,502,500 to the plan for an overpriced purchase.
In such plans, they have more than twice the average retirement balance of other workers.
Reliance Trust will pay $4,545,454 back to the plan within 30 days.
The settlement agreement resolves a civil suit brought by the DOL, alleging Cactus Feeders Inc. ESOP fiduciaries failed to fulfill their obligations under ERISA during a December 2010 stock transaction.
A federal district court has entered a consent judgment requiring the fiduciaries of the Sonnax Industries’ employee stock ownership plan (ESOP) to pay $2,225,000 to the plan.
Both aim to promote employee ownership and have bipartisan support.
The class-action suit had accused the company of making statements to artificially inflate Eaton’s stock.
Newly leveraged Employee Stock Ownership Plans that borrow a large amount may find that their deductible expenses will be lower.