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.
Employee Ownership Legal Digest (2) 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
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.
Corey Rosen
ESOP Valuation Case Can Proceed
In Ramirez et. al. v. AMPAM Parks Mech., Inc., No. EDCV 24-1038-KK-DTBx (C.D. Cal. Feb. 14, 2025), employees moved forward with most of their claims against AMPAM Parks Mechanical and the plan’s trustee. The lawsuit alleges the company’s ESOP overpaid for the stock, which was sold for a depressed price.
Corey Rosen
Suit Against Alerus Dismissed, But Plaintiffs Can Amend Complaint
In Dalton v. Freeman, No. 2:22-cv-00847-DJC-DB (E.D. Cal. Mar. 24, 2025), a court ruled plaintiffs had not pled a specific enough case against Alerus, which was acting as a trustee at O.C. Communications when the ESOP company was sold.
Corey Rosen
Tax Court Lacks Jurisdiction in Appeal of Potential ESOP Disqualification Case
In Solid Ground Transportation v. Commissioner, No. 24-1184 (Mar. 18, 2025), the 7th Circuit dismissed a petition from Solid Grant Transportation over the potential disqualification of its ESOP. The company received a letter from an IRS agent with questions about its plan from 2013 to 2018.
Corey Rosen
Plaintiffs Can Proceed with Case Over How Cash is Invested in ESOP
In Schultz v. Aerotech, Inc., No. 24-618 (W.D. Pa. Feb. 20, 2025), a court allowed a case to proceed over how an ESOP company invested cash in the trust. Plaintiffs allege the cash was too conservatively invested.
Corey Rosen
Final Court Approval for Settlement Casino Queen Case
In Hensiek v. Bd. of Dirs. of Casino Queen Holding Co., 20-cv-377-DWD (S.D. Ill. Feb. 25, 2025), employees of Illinois-based Casino Queen Inc. received final court approval for a $7.1 million settlement resolving litigation over the company’s employee stock ownership plan.
Corey Rosen
Rules Decisively Against DOL in Common Interest Case
In Harrison v. Envision Management, No. 21–cv–00304–CNS–MD (D.C. Colo. Jan. 13, 2025), a court confirmed a magistrate’s earlier ruling against the Department of Labor (DOL) in a case in which the plaintiff’s law firm received information from the DOL under a common interest agreement, even though the DOL was not a party to the suit.
Corey Rosen
Class Certified in Envision Holdings ESOP Valuation Case
In Harrison v. Envision Management Holding Company, No. 22-1098 (D.C. Colo. Jan. 25, 2025), a district court certified a class in an ESOP valuation case. The plaintiff had alleged that the ESOP overpaid for the shares. The plan contained an arbitration clause, which Envision sought to enforce.
Corey Rosen
Settlement Approved in Advanced Diagnostics Case
In Colon v. Johnson, No. 8:22-cv-00888-TPB-TGW (Dec. 17, 2024), a $19 million settlement was given final approval in a case alleging diversion of assets in an ESOP company.