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 Smith v. Greatbanc Trust, No. 20 C 2350 (7th Cir., Sept. Sept. 10, 2021), the Seventh Circuit upheld a lower court ruling that an arbitration clause in a plan document could not be used to prevent a former participant from pursuing a claim that the ESOP had overpaid for shares in a valuation case involving Triad Manufacturing.
Corey Rosen
In Martin Resource Management Corp. v. Federal Insurance Co. (5th Cir., Aug. 6, 2021), the Fifth Circuit ruled that Chubb Ltd. did not have to cover Martin Resource Management for its reimbursement to Wilmington Trust, its ESOP trustee, for payments it made in an ESOP valuation case settled in 2020.
Corey Rosen
In Rael & Letson v. Clark (Cal. Appeals Court, Unpublished, Apr. 14, 2021), a California court ruled that Michael Clark was liable as former CEO for misappropriating over $3 million from the company for his personal use by having the company pay personal credit card bills, charges for his home utilities, private airplanes, country club dues at four clubs, a car, and other items for his personal use.
Corey Rosen
The updated NCEO publication on the Department of Labor process agreements is now available.
Corey Rosen
Revenue Procedure 2021-30 lays out a number of changes to the Voluntary Correction Procedure process for the correction of plan qualification errors.
Corey Rosen
In Halperin v. Richards, No. 20-2793, WL 3184305 (7th Cir. July 28, 2021), the Seventh Circuit considered whether ERISA “preempts certain state-law claims brought by bankruptcy creditors on behalf of a company against its directors and officers and others alleged to have inflated the company’s stock value to conceal the company’s decline and to benefit corporate insiders.”
Corey Rosen
In Osborne et al. v. Employee Benefits Administration Board of Kraft Heinz et al., No. 1:20-cv-02256 (N.D. Ill., Aug. 23, 2021), plaintiffs in Kraft Heinz’s retirement plan failed to convince a court that a drop in the price of their company’s stock was a fiduciary violation.
Corey Rosen
In Webb v. Fid. Brokerage Servs., No. 354691 (Mich. Ct. App., 354691, July 29, 2021), a retired employee lost claim for a breach of fiduciary duty after his GM stock dropped within a rollover IRA managed by Fidelity.
Corey Rosen
In Rush v. GreatBanc, No. 19-cv-00738 (N.D. Ill., June 16, 2021), a district court granted class status to the plaintiff, saying that he could represent the class of participants in an ESOP at Segerdahl Corporation.
Corey Rosen
In Wong v. Flynn-Kerper, No. 19-56289 (9th Cir., June 7, 2021), the Ninth Circuit overrode a lower court dismissal of a case in which plaintiffs sought to recover an alleged overpayment to the late Bernard Kerper from his widow. Kerper was the former trustee of an ESOP at Anaplex.
