Stay informed on the latest legal developments impacting employee ownership. This page provides timely and concise summaries of key cases and rulings, contributed by experienced attorneys, to help the entire employee ownership community understand their implications, and also offers access to NCEO's archive of prior content.
James G. Steiker
In Chea v. Lite Star ESOP Committee, No. 1:23-cv-00647-JLT-SAB (E.D. Cal., June 10, 2025), a settlement has been reached in a valuation lawsuit at B-K Lighting. Plaintiffs alleged the shares were overvalued because of excessively optimistic forecasts and the ESOP paying for control it did not have.
Griffin O'Gara
A lawsuit alleging fiduciary breaches in connection with a 2016 ESOP transaction involving BSC Ventures Holdings, Inc. has reached a $8 million settlement.
Christopher Wingard
A lawsuit alleging fiduciary breaches in connection with a 2018 ESOP transaction involving Ritchie Trucking Service Holdings, Inc. has reached a $1.85 million settlement.
Corey Rosen
In Jones v. Zander Grp. Holdings, No. 8:24CV428 (D. Neb. May 27, 2025), a district court ruled that defendants at ESOP-owned Zander Group Holdings cannot subpoena the attorneys for the plaintiff or communications between the attorneys and the plaintiffs.
Christopher Wingard
On June 2, 2025, the U.S. Department of Labor (DOL) announced the launch of a new website for a cross-agency opinion letter program designed to enhance compliance across five enforcement divisions.
Corey Rosen
A three-judge panel for the 11th Circuit Court of Appeals said that they were bound by the precedent in the circuit that plaintiffs had to exhaust their remedies under the plan documents prior to proceeding with litigation.
Corey Rosen
ESOP legal experts suspect that the recent unanimous Supreme Court decision in Cunningham v. Cornell University, No. 23-1007 (U.S. Apr. 17, 2025) will make it easier for plaintiffs to file lawsuits against ESOP fiduciaries. The issue in Cornell related to ERISA’s prohibited transaction provisions and the many statutory exemptions.
Corey Rosen
ESOP legal experts suspect that the recent unanimous Supreme Court decision in Cunningham v. Cornell University, No. 23-1007 (U.S. Apr. 17, 2025) will make it easier for plaintiffs to file lawsuits against ESOP fiduciaries.
Corey Rosen
A $580,000 settlement was reached in Arnold v. Paredes, No. 3:23-cv-00545 (M.D. Tenn., Apr. 17, 2025). Plaintiffs at Churchill Mortgage, an 800-employee company, alleged that part of the dividends paid on shares held by the 100% ESOP were used to offset required employer contributions to the plan.
Corey Rosen
A district court ruled on all counts for defendants in a case involving the sale of the Segerdahl Corporation.
