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.
Tag: Employee Stock Ownership Plan
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.