Corey Rosen
Claims Dismissed in Sale Against Board, Trustee in Sale of ESOP Company
In Szalanski, Brenda v. Arnold, Mike et al., No. 3:2019cv00940 - Document 47 (W.D. Wis. 2022), a court ruled in favor of defendants in the sale of PDQ to Kwik Trip.
Employee Ownership Legal Digest (16) 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
DOL Files Amicus Brief Opposing Arbitration
The Department of Labor has filed an amicus brief in Cedeno v. Argent Tr. Co., No. 20-CV-9987 (JGK), (S.D.N.Y. Nov. 2, 2021).
Corey Rosen
McBride ESOP Case Settlement Reached
In Godfrey v. GreatBanc et al., No. 18 C 7918 (N.D. Ill., May 24, 2022) plaintiffs and defendants have reached a settlement agreement for $16.5 million.
Corey Rosen
EBSA Nominee Nears Approval
After a prolonged process, the Senate is poised to approve President Biden’s nominee to be the head of the Department of Labor’s Employee Benefit Security Administration.
Corey Rosen
IRS Launches Pilot Audit Compliance Program
In the June 3, 2022, issue of the IRS Employee Plans News, the IRS announced a pre-examination retirement plan pilot compliance program that allows plan sponsors to voluntarily correct any errors prior to an audit.
Corey Rosen
Alabama Telecommunications Company Settles ESOP Lawsuit
In Threadford, et al. v. Horizon Trust & Investment Management, et al. (Case No. 20-cv-00750 (W.D. Okla., May 18, 2022) a district court approved a $2.1 million settlement between Horizon Trust and two of McKinney Communication Company’s founders and the plaintiffs, who represented 309 ESOP participants.
Corey Rosen
Seventy Seven Energy 401(k) Stock Drop Case Settled
n Snider v. Administrative Committee Seventy Seven Energy Retirement Plan, Cov29-977-D (W.D. Okla., May 21, 2022), a district court approved a $15 million settlement for 4,000 employees covered by a 401(k) plan at Seventy Seven Energy that had invested in the stock of Chesapeake Energy, Seventy Seven Energy’s previous parent.
Corey Rosen
KPC ESOP Class Action Can Proceed Against Investment Manager
Gamino v. KPC Healthcare lets ESOP employees proceed with an overvaluation lawsuit, allowing class claims and challenging trustee and advisor conduct.
Corey Rosen
McBride ESOP Case Settled
In Godfrey v. GreatBanc et al., No. 18 C 7918 (N.D. Ill. May 16, 2022), a court approved an agreement to settle a lawsuit over an ESOP reorganization at McBride & Company in a 2013 reorganization that reduced the ESOP’s ownership from 100% to 60%, with officers of the company owning 40%.
Corey Rosen
Settlement Approved in Raydon Case
In Woznicki v. Raydon Corp., No. 6:18-cv-02090-WWB-GJK (M.D. Fla., May 2, 2022), a district court awarded a $2.4 million settlement in a case challenging a $60.5 million transaction in which Raydon became owned by an ESOP.