Christopher Wingard
Settlement Reached in Ritchie Trucking ESOP Valuation Case
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.
Employee Ownership Legal Digest Archive
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.
Corey Rosen
ESOP Defendants Cannot Subpoena Plaintiff’s’ Attorneys or Attorney-Client Communications
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
New DOL Site to Facilitate Finding and Submitting DOL Opinion Letters
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
11th Circuit Panel Questions Requirement for Exhaustion of Remedies in ESOP Case
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 Valuation Case Can Proceed
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
New Supreme Court Case Could Make It Easier to Take ESOP Cases to Court
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
Churchill Mortgage Dividend Use Case Settled
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
ESOP Company Sale Case Dismissed
A district court ruled on all counts for defendants in a case involving the sale of the Segerdahl Corporation.
Corey Rosen
Settlement Reached in New England Biolabs Case
A settlement has been reached in Jackson v. New England Biolabs Inc., No. 1:23-cv-12208-RGS (Feb. 14, 2025). The company had an ESOP until 2013, which it converted to a profit-sharing plan.
Corey Rosen
Settlement Reached in Morton Buildings Case
In Lysengen v. Argent Trust, et al., No. 1:20-cv-01177MMM-JEH (D.C. Ill. May 9, 2025), a court approved a $4 million settlement in a lawsuit over a 50% drop in the value of Morton Buildings in the year following the company’s taking on debt to fund the ESOP. The plan initially owned a minority of the shares in the company.