Fiduciaries Accused of Shortchanging Participants in ESOP Sale
A Department of Labor lawsuit says the fiduciaries allowed the ESOP's ownership shares to be sold for less than market...
Tag: ESOPs
Court Rebuffs DOL’s ESOP Valuation Case Against Engineering Firm
One commentator who works in the employee stock ownership plan space says the ruling represents “one of the most comprehensive rebukes of DOL arguments” in such a valuation...
Pandemic Proved Value of ‘S-ESOP’ Employee Ownership
Workers at employee-owned S corporations, who invest in and own their employers via ‘S employee stock ownership plans,’ report being...
Bellwether IBM Stock Drop ERISA Lawsuit Settlement Published
The case history of IBM v. Jander shows the importance, but also the limitations, of Supreme Court rulings in fiduciary...
Judge Certifies Class in Lawsuit Filed by ESOP Participants
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.
Proposed Bill Would Give 403(b) Plan Sponsors Access to Open MEPs
The SECURE Act's provisions for pooled employer plans (PEPs) did not apply to 403(b) plans.
Wilmington Trust Faces Further ERISA Litigation Tied to ESOP Clients
The firm has previously settled similar challenges related to market price evaluation services provided to employee stock ownership plans.
Republic, GreatBanc Agree to Settlement of ESOP Lawsuit
The lawsuit alleges a series of bad-faith dealings were made that caused losses to the ESOP while benefiting executives.
Wilmington Trust to Pay $80 Million to Settle DOL Investigations
The DOL alleged Wilmington Trust caused losses to ESOPs when it authorized them to pay more than fair market value for privately held employer stock.
Servicing Strategies
Hazard Prevention
403(b) sponsors may stave off lawsuits by cleaning up plan governance.
Government Plaintiffs Clear Dismissal Hurdle in Reliance Trust Lawsuit
The Department of Labor brought the underlying case and has argued successfully in opposition to the defendants’ dismissal motion, which has now been denied.
Compliance News
Legislative and Judicial Actions
Key legislation, regulations and litigation from Washington, D.C., and the courts.
Servicing Strategies
Sharing Ownership
Advisers help sponsors limit participant use of company stock.
Wawa ESOP Case Stayed Until Settlement Agreement Drafted
A judge previously found eliminating ESOP participants’ right to invest in company stock is not a violation of ERISA’s anti-cutback provisions, but forcing participants with balances greater than...
Wilmington Trust to Pay $5 Million to Settle ESOP Lawsuit
The motion cites as one reason for settlement “probable costs, in both time and money, of continued litigation.”
Court Dimisses Lawsuit Over ESOP Valuation
A federal district court judge explained how the plaintiff actually benefited after the stock shares were purchased, so she suffered no harm.
Court Finds Red Flags Ignored in ESOP Valuation
Fiduciaries were ordered to restore $6,502,500 to the plan for an overpriced purchase.
Cover Story
Advisers’ Future Trajectory
Firms confront a convergence of retirement plan and wealth consulting
Court Finds Former ESOP Participant Released Claims to Sue
A federal court judge found a severance agreement was broad enough to cover Employee Retirement Security Act (ERISA) claims against the trustee of an employee stock ownership plan...