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.
Employee Ownership Legal Digest (29) Archive
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
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Ambiguous Stock Option Offer Letter Superseded by Subsequent Correspondence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.
Corey Rosen
Hewlett-Packard, Eaton Defeat Challenges to Stock in 401(k) Plans
Two circuit courts ruled for the defendants in stock-drop lawsuits involving company stock in 401(k) plans.
Corey Rosen
Wilmington Trust Cannot Transfer Lawsuit to Delaware
A court denied Wilmington Trust’s request to move jurisdiction in an ESOP lawsuit concerning valuation at Graphite Sales to Delaware.