Corey Rosen
SVB Employees Recover $25M in Stock Plan Funds
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.
Employee Ownership Legal Digest (14) 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
SBA Adopts New Guidance Making Loans to ESOPs Much Easier
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
Envision Arbitration Denied in 10th Circuit ESOP Case
The 10th Circuit declined to revisit its ruling that Envision Management cannot compel arbitration in an ERISA ESOP overpayment lawsuit.
Corey Rosen
ESOP Trustee Must Face Class Action Lawsuit in Symbria Transaction
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
Court Allows ESOP Fiduciary Case to Proceed in Moore v. VCB
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
Suit over Price Paid to Former ESOP Participants Can Continue
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
Plaintiffs Can Proceed with Lawsuit over Sale of ESOP Company
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.
Corey Rosen
Employee Can Amend Complaint in ESOP Valuation Case
In Novosel v. Azcon Inc. Employee Benefits Plan Committee, No. 21 C 3080, (N.D. Il, E.D., Jan. 9, 2023), an employee was allowed to amend her complaint that she was underpaid for her ESOP shares because of an interim valuation that reduced the value of her stock by $53,000.
Corey Rosen
ISCO Plaintiffs Lose Request to Court to Reconsider Arbitration Decision
In Best et al v. James., No. 320-cv-299-JRW (W.D. Ky., Jan. 9, 2023) a court again ruled that plaintiffs must agree to arbitrate their claims against executives of ISCO Industries concerning the buyback of company shares from the ESOP.
Corey Rosen
Insurance Issues in ESOP Cases Become More Common
Insurance for ESOP companies and fiduciaries has become more common in recent years, with courts limiting claims often because of contract exclusions, as in Martin Resource Management Corp. v. Federal Insurance Co., (5th Cir., Aug. 6, 2021); Gemini Insurance v. Potts, No. 2:16-cv-612 (S.D. Ohio Jul. 15, 2020); and Great American Fidelity Insurance Company v. Stout Risius Ross, Inc., No. 19-cv-11294 (E.D. Mich., Aug 23, 2021).