Corey Rosen
Ramirez v. AMPAM: ESOP Overvaluation Lawsuit Advances
Employees challenge AMPAM ESOP sale, alleging overpayment and management control of the trustee. Court allows most claims to proceed.
Employee Ownership Legal Digest (5) 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
Suit Against Alerus Dismissed, But Plaintiffs Can Amend Complaint
In Dalton v. Freeman, No. 2:22-cv-00847-DJC-DB (E.D. Cal. Mar. 24, 2025), a court ruled plaintiffs had not pled a specific enough case against Alerus, which was acting as a trustee at O.C. Communications when the ESOP company was sold.
Corey Rosen
Court Rejects Early ESOP Challenge in Solid Ground Case
In Solid Ground Transportation v. Commissioner, No. 24-1184 (Mar. 18, 2025), the 7th Circuit dismissed a petition from Solid Grant Transportation over the potential disqualification of its ESOP. The company received a letter from an IRS agent with questions about its plan from 2013 to 2018.
Corey Rosen
Plaintiffs Can Proceed with Case Over How Cash is Invested in ESOP
In Schultz v. Aerotech, Inc., No. 24-618 (W.D. Pa. Feb. 20, 2025), a court allowed a case to proceed over how an ESOP company invested cash in the trust. Plaintiffs allege the cash was too conservatively invested.
Corey Rosen
Final Court Approval for Settlement Casino Queen Case
In Hensiek v. Bd. of Dirs. of Casino Queen Holding Co., 20-cv-377-DWD (S.D. Ill. Feb. 25, 2025), employees of Illinois-based Casino Queen Inc. received final court approval for a $7.1 million settlement resolving litigation over the company’s employee stock ownership plan.
Corey Rosen
Court Rules Decisively Against DOL in Common Interest Case
In Harrison v. Envision Management, a court confirmed a magistrate’s earlier ruling against the Department of Labor (DOL) in a case in which the plaintiff’s law firm received information from the DOL under a common interest agreement, even though the DOL was not a party to the suit.
Corey Rosen
Class Certified in Envision Holdings ESOP Valuation Case
In Harrison v. Envision Management Holding Company, No. 22-1098 (D.C. Colo. Jan. 25, 2025), a district court certified a class in an ESOP valuation case. The plaintiff had alleged that the ESOP overpaid for the shares. The plan contained an arbitration clause, which Envision sought to enforce.
Corey Rosen
Settlement Approved in Advanced Diagnostics Case
In Colon v. Johnson, No. 8:22-cv-00888-TPB-TGW (Dec. 17, 2024), a $19 million settlement was given final approval in a case alleging diversion of assets in an ESOP company.
Corey Rosen
RVNB ESOP Case Settled
In Su v. Peterson et al., No. 4:19-cv-00705 (E.D. Tex. Jan. 8, 2025), parties reached a $14 million settlement in a case involving the sale of an ESOP company. The plaintiffs alleged a trustee for the company, which operated as All My Sons Moving & Storage, allowed a sale of the assets of the ESOP trust back to the company at a price that was below what the stock was worth.
Corey Rosen
Second Circuit Confirms Fiduciary Breach Case Not Subject to Arbitration
In Lloyd v. Argent Trust, No. 22-3116 (2d Cir. Jan. 6, 2025), the Second Circuit granted an unopposed motion to keep an ESOP case in court despite an arbitration clause in the plan.