Employee Ownership Legal Digest (3) Archive

Stay informed on the latest legal developments impacting employee ownership. This page provides timely and concise summaries of key cases and rulings, contributed by experienced attorneys, to help the entire employee ownership community understand their implications, and also offers access to NCEO's archive of prior content.

Lauren Wood

July 25, 2025

Court Allows Executive Trust Assets in Lloyd v. Argent Trust ESOP Lawsuit

On July 10, 2025, the United States District Court for the Southern District of New York allowed plaintiffs to amend their original complaint to add the trustees and beneficiaries of two trusts as defendants. These trusts received proceeds from a 2016 sale to the WBBQ Employee Stock Ownership Plan (ESOP), which is the subject of the plaintiffs’ suit. The newly added trusts are now possible sources of recovery for the plaintiffs.

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Christopher Wingard

July 18, 2025

Federal Court Dismisses ESOP Valuation Lawsuit for Lack of Standing, Allows Amended Complaint

On June 18, 2025, the U.S. District Court for the Western District of Wisconsin dismissed a class action lawsuit brought by Scott MacTaggert, a participant in the Extreme Engineering Solutions, Inc. ESOP.

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Christopher Wingard

July 18, 2025

Settlement Reached in Pride Mobility ESOP Cash Management Lawsuit

On June 17, 2025, the United States District Court for the Middle District of Pennsylvania approved a class action settlement in Tufano v. Pride Mobility.

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James G. Steiker

July 07, 2025

Settlement Reached in B-K Lighting Valuation Lawsuit

In Chea v. Lite Star ESOP Committee, No. 1:23-cv-00647-JLT-SAB (E.D. Cal., June 10, 2025), a settlement has been reached in a valuation lawsuit at B-K Lighting. Plaintiffs alleged the shares were overvalued because of excessively optimistic forecasts and the ESOP paying for control it did not have.

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Griffin O'Gara

July 07, 2025

Settlement Reached in BSC Ventures ESOP Litigation

A lawsuit alleging fiduciary breaches in connection with a 2016 ESOP transaction involving BSC Ventures Holdings, Inc. has reached a $8 million settlement.

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Christopher Wingard

June 23, 2025

Settlement Reached in Ritchie Trucking ESOP Valuation Case

A lawsuit alleging fiduciary breaches in connection with a 2018 ESOP transaction involving Ritchie Trucking Service Holdings, Inc. has reached a $1.85 million settlement.

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Corey Rosen

June 17, 2025

ESOP Defendants Cannot Subpoena Plaintiff’s’ Attorneys or Attorney-Client Communications

In Jones v. Zander Grp. Holdings, No. 8:24CV428 (D. Neb. May 27, 2025), a district court ruled that defendants at ESOP-owned Zander Group Holdings cannot subpoena the attorneys for the plaintiff or communications between the attorneys and the plaintiffs.

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Christopher Wingard

June 16, 2025

New DOL Site to Facilitate Finding and Submitting DOL Opinion Letters

On June 2, 2025, the U.S. Department of Labor (DOL) announced the launch of a new website for a cross-agency opinion letter program designed to enhance compliance across five enforcement divisions.

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Corey Rosen

June 13, 2025

11th Circuit Panel Questions Requirement for Exhaustion of Remedies in ESOP Case

A three-judge panel for the 11th Circuit Court of Appeals said that they were bound by the precedent in the circuit that plaintiffs had to exhaust their remedies under the plan documents prior to proceeding with litigation.

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Corey Rosen

May 07, 2025

New Supreme Court Case Could Make It Easier to Take ESOP Cases to Court

ESOP legal experts suspect that the recent unanimous Supreme Court decision in Cunningham v. Cornell University, No. 23-1007 (U.S. Apr. 17, 2025) will make it easier for plaintiffs to file lawsuits against ESOP fiduciaries.

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