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
SunTrust Banks agreed to settle a 10-year-old lawsuit alleging that plan fiduciaries allowed employees to invest in SunTrust Banks stock when they knew or should have known that the stock was artificially inflated.
Corey Rosen
A district court rejected a magistrate’s decision that recommended that charges against ISCO and Wilmington Trust, the ESOP trustee, be dismissed.
Corey Rosen
A district judge ruled that alleging that a trustee knew or should have known that the stock of SunEdison was overvalued and too risky was insufficient to state a claim.
Corey Rosen
The Department of Labor entered into a new settlement agreement with an ESOP fiduciary, in this case, Alpha Investment Consulting Group.
Corey Rosen
In Gernandt v. SandRidge Energy, Inc., No. 5:15-cv-00834-D (W.D. Okla., Nov. 18, 2018) a district court ruled that plaintiffs had not met the Dudenhoeffer standards of providing a plausible alternative course of action.
Corey Rosen
In Vigeant v. Meek, No. 0:18-cv-00577-JNETNL (D-Minn., Nov. 17, 2018), a judge dismissed a lawsuit against plaintiffs who alleged that Lifetouch stock dropped by more than $840 million between 2015 and 2018, resulting in an average loss of $22,000 per participant.
Corey Rosen
The IRS has announced new 2019 limits for retirement plans
Corey Rosen
In Barker v. Selway Corp., No. 9:18-cv- 00179 (D. Mont., petitioners’ motion for preliminary approval of settlement, Nov. 16, 2018) the parties agreed to an arbitrated $5.5 million settlement.
Corey Rosen
In Pfeifer v. Wawa, Inc., No. 2:16-cv-00497-PD (E.D. Pa., motion for settlement approval filed 12/29/17), the trustees of WaWa’s ESOP agreed to pay about 2,300 current and former employees $25 million ($5 million of which will go to attorney’s fees).
Corey Rosen
In Yates v. Nichols, No. 3:17-cv-01389-JGC 2017 (N.D. Ohio, order granting defendant’s motion to dismiss December 18, 2017), a court ruled that fiduciaries of Marathon’s 401(k) plan did not breach their fiduciary duties by allowing employees to invest in company stock in the company’s 401(k) plan.
