Employee Ownership Legal Digest (2) 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.

Rick Pearl

Court Rules on Certain Damages and Remedies Issues in Cruise America ESOP Valuation Lawsuit

Su v. Bensen, No. CV-19-03178-PHX-ROS, 2025 WL 1634940 (D. Ariz. June 9, 2025)

In August of 2024, a federal district court entered judgment in the Department of Labor’s (DOL) favor and against certain defendants in a case involving RVR, Inc., d/b/a Cruise America, and the RVR Inc. Employee Stock Ownership Plan (ESOP). The judge determined that the $105 million ESOP transaction was overvalued by $72 million.

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Lauren Wood

Court Allows Executive Trust Assets in Lloyd v. Argent Trust ESOP Lawsuit

Lloyd v. Argent Trust, No. 1:22-cv-04129-DLC (S.D. NY, July 10, 2025)

On July 10, 2025, the United States District Court for the Southern District of New York allowed plaintiffs to amend their original complaint to add the trustees and beneficiaries of two trusts as defendants. These trusts received proceeds from a 2016 sale to the WBBQ Employee Stock Ownership Plan (ESOP), which is the subject of the plaintiffs’ suit. The newly added trusts are now possible sources of recovery for the plaintiffs.

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Christopher Wingard

Federal Court Dismisses ESOP Valuation Lawsuit for Lack of Standing, Allows Amended Complaint

MacTaggert v. Professional Fiduciary Servs., LLC, No. 22-cv-371-wmc, (W.D. Wis. June 18, 2025)

On June 18, 2025, the U.S. District Court for the Western District of Wisconsin dismissed a class action lawsuit brought by Scott MacTaggert, a participant in the Extreme Engineering Solutions, Inc. ESOP.

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Corey Rosen

ESOP Defendants Cannot Subpoena Plaintiff’s’ Attorneys or Attorney-Client Communications

Jones v. Zander Grp. Holdings, No. 8:24CV428 (D. Neb. May 27, 2025)

In Jones v. Zander Grp. Holdings, No. 8:24CV428 (D. Neb. May 27, 2025), a district court ruled that defendants at ESOP-owned Zander Group Holdings cannot subpoena the attorneys for the plaintiff or communications between the attorneys and the plaintiffs.

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Corey Rosen

11th Circuit Panel Questions Requirement for Exhaustion of Remedies in ESOP Case

Bolton v. Inland Fresh Seafood Corp. of Am., Inc., No. 24-10084 (11th Cir.)

Bolton v. Inland Fresh Seafood Corp. of Am., Inc., No. 24-10084 (11th Cir. Oct. 15, 2025)

A three-judge panel for the 11th Circuit Court of Appeals said that they were bound by the precedent in the circuit that plaintiffs had to exhaust their remedies under the plan documents prior to proceeding with litigation.

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