Corey Rosen
Wilmington Trust Must Defend Itself in ESOP Lawsuit
A district court rejected a magistrate’s decision that recommended that charges against ISCO and Wilmington Trust, the ESOP trustee, be dismissed.
Employee Ownership Legal Digest (28) Archive
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Corey Rosen
Another Loss for Plaintiffs in Stock Drop Case
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
DOL Enters into New Settlement Agreement on ESOPs
The Department of Labor entered into a new settlement agreement with an ESOP fiduciary, in this case, Alpha Investment Consulting Group.
Corey Rosen
Another Stock-drop Case Fails
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
Lifetouch Lawsuit Dismissed
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
New Limits on Annual Contributions and Additions
The IRS has announced new 2019 limits for retirement plans
Corey Rosen
Selway Agrees to Settlement
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
WaWa Agrees to Settlement in Account Segregation Case
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
Court Dismisses Marathon 401(k) Stock-Drop Claims
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.
Corey Rosen
Ambiguous Stock Option Offer Letter Superseded by Subsequent Correspondence
In Vespremi v. Tesla Motors, a state court ruled that a plaintiff who had received an offer for stock options in Tesla could not receive any of the stock options he claimed he deserved.