Corey Rosen
EBSA Nominee Nears Approval
After a prolonged process, the Senate is poised to approve President Biden’s nominee to be the head of the Department of Labor’s Employee Benefit Security Administration.
Employee Ownership Legal Digest (14) 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
IRS Launches Pilot Audit Compliance Program
In the June 3, 2022, issue of the IRS Employee Plans News, the IRS announced a pre-examination retirement plan pilot compliance program that allows plan sponsors to voluntarily correct any errors prior to an audit.
Corey Rosen
Alabama Telecommunications Company Settles ESOP Lawsuit
In Threadford, et al. v. Horizon Trust & Investment Management, et al. (Case No. 20-cv-00750 (W.D. Okla., May 18, 2022) a district court approved a $2.1 million settlement between Horizon Trust and two of McKinney Communication Company’s founders and the plaintiffs, who represented 309 ESOP participants.
Corey Rosen
Seventy Seven Energy 401(k) Stock Drop Case Settled
n Snider v. Administrative Committee Seventy Seven Energy Retirement Plan, Cov29-977-D (W.D. Okla., May 21, 2022), a district court approved a $15 million settlement for 4,000 employees covered by a 401(k) plan at Seventy Seven Energy that had invested in the stock of Chesapeake Energy, Seventy Seven Energy’s previous parent.
Corey Rosen
KPC ESOP Class Action Can Proceed Against Investment Manager
In Gamino v. KPC Healthcare Holdings, Inc. et al., No. 5:20-CV-01126-SB-SHK (C.D. Cal. Jan. 15, 2021), a district court allowed employees of KPC Healthcare to proceed with their lawsuit over an alleged overvaluation.
Corey Rosen
McBride ESOP Case Settled
In Godfrey v. GreatBanc et al., No. 18 C 7918 (N.D. Ill. May 16, 2022), a court approved an agreement to settle a lawsuit over an ESOP reorganization at McBride & Company in a 2013 reorganization that reduced the ESOP’s ownership from 100% to 60%, with officers of the company owning 40%.
Corey Rosen
Settlement Approved in Raydon Case
In Woznicki v. Raydon Corp., No. 6:18-cv-02090-WWB-GJK (M.D. Fla., May 2, 2022), a district court awarded a $2.4 million settlement in a case challenging a $60.5 million transaction in which Raydon became owned by an ESOP.
Corey Rosen
ESOP Lawsuit Over Sale of ESOP Company Can Proceed
In Moore v. Va. Cmty. Bankshares, No. 3:19-cv-00045 (W.D. Va.. Mar. 30, 2022), a court ruled that a lawsuit alleging fiduciary improprieties in the sale of ESOP shares at Virginia Community Bank (VCB) prior to a merger could continue.
Corey Rosen
Court Dismisses Valuation Firm’s Claim Against Insurer
In Stout Risisus Ross v. Aspen Insurance, No. 21 Civ. 4412 (ER) (S.D. N.Y., March 18, 2022), a district court ruled that Aspen Insurance did not have a duty to indemnify and defend Stout Risius Ross (SRR) for actions arising out of its valuation work for Wilmington Trust, which acted as the trustee for an ESOP at Constellis, Inc.
Corey Rosen
Court Allows Valuation Case to Proceed
In Lysengen v. Argent Trust, et. al., No. 1:20-cv-01177-MMM-JEH (D.C. Ill., March 22, 2022) a court ruled that an ESOP valuation could proceed against additional defendants in a case where the court had previously allowed the case to proceed against the plan’s trustee.