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.