Corey Rosen
ESOP Radiology Company Settles Lawsuit
In a second radiology company case, Colon v. Johnson, No. 8:22-cv-00888-TPB-TGW (Mar. 28, 2024), a $19 million settlement was reached concerning alleged diversion of assets in an ESOP company.
Employee Ownership Legal Digest (10) Archive
Stay informed on the latest legal developments impacting employee ownership with timely and concise summaries of key cases and rulings. Learn more about this digest »
Corey Rosen
Court Rules Arbitration Clause Does Not Apply in A360 ESOP Termination Lawsuit
In Williams v. Shapiro, No. 1:23-cv-03236-VMC (Mar. 20, 2024), plaintiffs allege that an ESOP set up at their company, A360, was improperly terminated, preventing them from reaping potentially very large gains on their unallocated stock.
Corey Rosen
ESOP Valuation Case Against Envision Radiology Can Proceed
In Harrison v. Envision Management Holding Company, No. 22-1098 (D. Colo. Mar. 21, 2024), a district court said that plaintiffs had pleaded sufficient allegations to allow a case concerning the price paid by an ESOP for Envision Radiology to continue.
Corey Rosen
Former CEO and Owner of ESOP Company Sentenced to Prison for Fraud
In USA v. Corl et al., Docket No. 5:18-cr-00576 (N.D. Cal. Mar. 19, 2024), Harry Corl, former owner and CEO of Nu-Metal Finishing, was sentenced to serve 30 months in prison and pay $253,625 in restitution to 30 former employees of a company he and his wife had partially owned. The Corls sold part of the company to the ESOP, while the other part was owned by a separate owner.
Corey Rosen
Plaintiff Must Arbitrate ESOP Claim
In Harris v. Paredes, No. 3:23-cv-50231 (N.D. Ill. Feb. 26, 2024), a district court ruled that an arbitration in a plaintiff in an ESOP valuation lawsuit requires the plaintiff to pursue arbitration.
Corey Rosen
Casino Queen Employees Cannot Be Certified as Class in ESOP Valuation Suit
In Hensiek v. Bd. of Dirs. of Casino Queen Holding Co., No. 3:20-CV-377-DWD (S.D. Ill. Feb. 26, 2024), a federal judge denied class certification in a long-running dispute over the valuation of shares in the sale of Casino Queen to an ESOP in 2012.
Corey Rosen
Case Over Valuation of Terminated ESOP Shares Can Continue
In Bowers, et al. v. Russell, et al. No. 22-10457 (D. Mass., Feb. 15, 2024), a district court allowed plaintiffs to continue their case against the defendants in a valuation and release of claims dispute.
Corey Rosen
Wells Fargo KSOP Litigation Settled
In Randall et al v. Greatbanc Trust Company et al., No. 0:2022cv02354 (D. Minn. Feb. 21, 2024), a court ruled that plaintiffs can continue their suit over the use of dividends on preferred shares in a 401(k)/ESOP at Wells Fargo.
Corey Rosen
Electric Supply Company of Tampa ESOP Litigation Settled
In Cothran v. Adams, No. 8:23-cv-00518-CEH-CPT (M.D. Fl. Feb. 16, 2024), a settlement has been reached in another case of an ESOP termination. In 2011, Electric Supply (ESI) set up a non-leveraged ESOP with the intention of the ESOP becoming the majority owner over time.
Corey Rosen
Valuation Case Against B-K Lighting Can Continue
In Chea v. Lite Star ESOP Committee, No. 1:23-cv-00647-JLT-SAB (E.D. Cal., Jan. 25, 2025), a magistrate court ruled that a lawsuit over the valuation of shares sold to an ESOP at B-K Lighting was overstated, largely because of allegedly excessively optimistic forecasts and because the ESOP paid for control it did not functionally have.