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
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
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
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
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
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
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
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
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.
Corey Rosen
In Placht v. Argent et al., No. 1:21-cv5783 D (N.D. Ill. Jan. 8, 2025), a court gave final approval for a settlement agreement in an ESOP valuation case against Argent Trust, the trustee for the ESOP at Symbria.
Corey Rosen
In a strongly worded letter, Rep. Virginia Foxx, R-NC, chair of the House Committee on Education and the Workforce, says that the Department of Labor (DOL) abused its authority when it shared information from an ongoing investigation of Envision Radiology’s ESOP with the law firm Cohen Milstein, which is acting as the counsel for the plaintiffs in an ESOP valuation lawsuit against the trustee, selling share-holders, and individuals at the company.
