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 Gamino v. KPC Healthcare Holdings, Inc. et al., No. 5:20-V-01126-SB-SHK (C.D. Cal. June 5, 2023), Silver Point Capital agreed to a $100,000 settlement over its role in the ESOP at KPC Healthcare. Silver Point had previously won a dismissal from the case.
Corey Rosen
The US Department of Labor (DOL) has stated that it will undertake a formal notice and comment rulemaking “relatively soon” on the adequate consideration requirement governing the valuation of ESOP-held shares.
Corey Rosen
In Smith v. GreatBanc Trust Company, No. 20 C 2350 (N.D. Ill. Feb. 9, 2023), plaintiffs and defendants agreed to settle a case in which the plaintiffs argued that their ESOP paid $104 million for stock they contend was worth only $4 million.
Corey Rosen
About 4,000 employees of failed Silicon Valley Bank will get back $25 million that they had set aside to buy stock at a discount under the bank’s employee stock purchase plan.
Corey Rosen
The Small Business Administration (SBA) has taken steps to make loans to ESOPs much easier than under prior rules. The agency had received considerable criticism for issuing requirements for ESOP loans that are inconsistent with the language and intention of the Main Street Employee Ownership Act (MSEOA).
Corey Rosen
The 10th Circuit declined to revisit its ruling that Envision Management cannot compel arbitration in an ERISA ESOP overpayment lawsuit.
Corey Rosen
In Placht v. Argent et. al., No. 1:21-cv5783 D (N.D. Ill. Apr. 11, 2023), a district court allowed plaintiffs to proceed as a class in an ESOP valuation case against the trustee, Argent Trust.
Corey Rosen
In Moore v. Va. Cmty. Bankshares, No. 3:19-cv45 (W.D. Va. Mar. 30, 2023), 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
In Daly v. W. Monroe Partners, Inc., No. 21 C 6805 (N.D. Ill. Mar. 15, 2023), a district court allowed a former employee of West Monroe Partners to continue, although it ruled for the defendant on some issues.
Corey Rosen
In Rush v. GreatBanc, No. 19-cv-00738 (N.D. Ill., Dec. 16, 2022),a district court allowed a lawsuit to proceed claiming the sale of an ESOP company was for too little money. The company was 100% ESOP-owned until sold in 2016.
