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
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
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
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
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
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
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
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
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
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.
Corey Rosen
In Arnold v. Paredes, No. 3:23-cv-00545 (M.D. Tenn., Jan. 31, 2024), plaintiffs allege that part of the dividends paid on the shares were used to pay off the ESOP debt and offset required employer contributions to the plan, which the defendants argue is what the dividends are supposed to be used for.
