Corey Rosen
Bradford Group Workers Get Class Certification in ESOP Valuation Case
Employees of the Bradford Group, an ESOP-owned catalog company, received class status in a suit contending the ESOP overpaid for the stock by $56 million.
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
Supreme Court asks DOL to file a brief in Pioneer Holding Case
The Supreme Court asked the Department of Labor to file a brief concerning the issue of burden-shifting in cases alleging a fiduciary breach. Circuits have split on the issue.
Corey Rosen
SunTrust Settles Employer Stock Claims
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
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.
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.