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.
The firm has previously settled similar challenges related to market price evaluation services provided to employee stock ownership plans.
The Department of Labor brought the underlying case and has argued successfully in opposition to the defendants’ dismissal motion, which has now been denied.
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.
A significant split among circuit courts on this issue remains unresolved.
Given a second chance to argue their case, participants in a Wells Fargo retirement plan have again failed to meet the steep pleading standards set out by the influential Supreme Court decision known as Fifth Third vs. Dudenhoeffer.
Plaintiffs in the lawsuit are participants and beneficiaries of the Rainbow Disposal Co., Inc. Employee Stock Ownership Plan, who seek to restore losses to the plan and to otherwise remedy a complicated series of alleged breaches of fiduciary duty.
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.
A complicated decision out of a Virginia district court weighs the merits of third-party expert commentary in ERISA litigation, in this case pertaining to an allegedly improper ESOP transaction.
In an interview with PLANADVISER, Jerry Ripperger, vice president of consulting at Principal, highlights a new, fee website the firm has rolled out to help advisers and their clients explore the potential benefits of launching employee stock ownership plans as part of a broader ownership transition.
Both aim to promote employee ownership and have bipartisan support.
The lawsuits alleged that First Bankers Trust violated the Employee Retirement Income Security Act when it approved stock purchases by three employee stock ownership plans.