Lauren Wood
Russelectric ESOP Case: $3M Partial Settlement Approved
A district court in Massachusetts approved a partial $3 million settlement with one of the company’s board of directors in a class action lawsuit against the Russelectric ESOP.
Employee Ownership Legal Digest (3) 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 »
Christopher Wingard
Tentative Settlement Reached in Davis v. United Bank Corp.
United Bank Corporation has reached a tentative $2 million settlement to resolve a class action lawsuit brought by former employees claiming ERISA violations related to the forced liquidation of ESOP shares into cash at an allegedly improper price.
Matthew Goedert
Court Dismisses, Without Prejudice, BDO ESOP Case for Lack of Standing
In Taylor v. BDO USA, P.C., plaintiff Tristin Taylor, a participant in the BDO USA Employee Stock Ownership Plan (ESOP), brought a putative class action under ERISA alleging that defendants breached their fiduciary duties when the ESOP allegedly overpaid for BDO stock.
Christopher Wingard
Court Grants Summary Judgment for Defendant in ESOP Legal Malpractice Case
A district judge granted summary judgment for attorney Greg Hansen in the valuation case involving Bowers and Kubota, a Hawaii architecture firm (the “company”).
Rick Pearl
PDQ Food Stores Employee Stock Plan Lawsuit Dismissed Again
On June 20, 2025, a federal district court in Wisconsin dismissed an employee’s lawsuit challenging the sale of PDQ, a partially ESOP-owned company, to a third party buyer. Around 2017, PDQ’s board sought a buyer and ultimately reached an agreement with Kwik Trip.
Rick Pearl
Court Rules on Certain Damages and Remedies Issues in Cruise America ESOP Valuation Lawsuit
In August of 2024, a federal district court entered judgment in the Department of Labor’s (DOL) favor and against certain defendants in a case involving RVR, Inc., d/b/a Cruise America, and the RVR Inc. Employee Stock Ownership Plan (ESOP). The judge determined that the $105 million ESOP transaction was overvalued by $72 million.
Lauren Wood
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.
Christopher Wingard
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.
Christopher Wingard
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.
James G. Steiker
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.