Corey Rosen
New Plan Limits for 2025
The IRS has released plan limits for 2025.
Employee Ownership Legal Digest (6) 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.
Corey Rosen
Symbria ESOP Valuation Case Reaches Settlement Agreement
In Placht v. Argent et al., No. 1:21-cv5783 D (N.D. Ill. Oct. 24, 2024), the contesting parties reached a settlement agreement in an ESOP valuation case against the trustee for an ESOP at Symbria, Argent Trust.
Corey Rosen
Western Global ESOP litigation settled
In David Burnett, et al., v. Prudent Fiduciary Services LLC, et al., No. 22-270-RGA (D. Del. Feb. 24, 2024), a district court gave preliminary approval for a settlement in a long-running lawsuit over a minority ESOP at cargo airliner Western Global.
Corey Rosen
Supreme Court Denies DOL Appeal in ESOP Valuation Case
In Su v. Bowers, D.C. No. 1:18-cv-00155SOMWRP (Oct. 14, 2024), the Supreme Court declined to hear an appeal of a January 7, 2024, Ninth Circuit ruling that the Department of Labor did not have to pay attorneys’ fees to the defendant attorneys in a valuation case the DOL decisively lost.
Corey Rosen
Claim that ESOP is rightful buyer of company dismissed, but other claims allowed to continue
In Walther et al., v. Wood et al., No. 1:23-CV-294-GSL-SLC (N.D. Ind.), a district court dismissed a claim by employees that their ESOP should have been the rightful buyer of the 90% of the stock the plan did not own at the time of the former owner’s death, but allowed a claim that the company and the plan’s fiduciary breached their fiduciary duties to continue.
Corey Rosen
Plaintiff does not have the right to see the valuation report
In Truong v. KPC Healthcare ESOP Committee, Case No. 8:23-cv-01384-SB-BFM (C.D. Cal. Sept. 9, 2024), a court said the plaintiff in a long-running ESOP case did not have the right to see the valuation report in the deal.
Corey Rosen
RVR case proceeds to remedies phase
In Su v. Bensen et al., No. CV-19-03178-PHX-JJT (D.C. Ariz. Aug. 15, 2024), a district court moved an already decided case to the issue of remedies.
Corey Rosen
Judge allows some claims in lawsuit over sale of ESOP company while declining others
In Miller v. Brozen, No. 23-2540 (RK) (JTQ), 2024 BL 304628 (D.N.J. Aug. 30, 2024), a district court dismissed some claims by plaintiffs while allowing others to continue in a case involving the sale of Asbury Carbons to Mill Rock Capital.
Corey Rosen
Long-running Casino Queen ESOP case reaches settlement
In Hensiek v. Bd. of Dirs. of Casino Queen Holding Co., 20-cv-377-DWD (S.D. Ill. Sept. 6, 2024), a settlement was reached in the long-running case over the bankruptcy of Casino Queen, which had been a 100% ESOP. Plaintiffs alleged the ESOP’s 2012 purchase of the company for $170 million was based on excessively optimistic projections.
Corey Rosen
New owners who bought an ESOP company cannot sue on behalf of plan
In Arborwell v. Alerus Financial, No. 4:23-cv-02770-DMR (N.D. Cal. June 24, 2024), a district court dismissed an unusual lawsuit against ESOP trustee Alerus Financial over the sale of Arborwell and its parent company SavATree to CI Quercus.