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.
Employee Ownership Legal Digest (7) 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
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.
Corey Rosen
IRS issues final rules for required minimum distributions
The SECURE 2.0 Act made a number of changes to rules for required minimum distributions (RMDs) from retirement plans. Most important, it extended the age at which RMDs must start and reduced penalties for failing to take one. On July 17, 2024, the IRS issued final rules for these distributions.
Corey Rosen
Tax court says taxpayers cannot undo section 1042 election
In Berman and Berman v. Commissioner, Nos. 202-13, 388-13 (US Tax Court, July 16, 2024), the Tax Court ruled taxpayers had to pay taxes on the disposition of qualified replacement property (QRP) they purchased after making a Section 1042 tax deferral election.
Corey Rosen
ESOP Lawsuit over Sale of ESOP Settlement Approved
In Moore v. Virginia Community Bankshares, No. 3:19-cv00045 (W.D. Va. June 24, 2024), a settlement has been approved in a lawsuit alleging fiduciary improprieties in the sale of ESOP shares at Virginia Community Bank (VCB) prior to a merger.
Corey Rosen
10th Circuit Dismisses ESOP Fiduciary Appeal
In Su v. Ascent Construction, No. 23-4114 (10th Cir. June 24, 2024), the appeals court ruled that the president of a Utah construction company cannot appeal a preliminary injunction removing him as the fiduciary for the plan because the appeal was made moot by the district court making the preliminary injunction permanent.
Corey Rosen
ESOP Valuation Case Settled
In Nguyen v. Westlake Services Holding Company, No. 8:23-cv-00854 (C.D. Cal. June 28, 2024), the plaintiff alleged that Westlake Holding Company changed its ESOP rules in 2020 to allow the company to segregate accounts of former employees before their receiving a distribution as well as to allow a special interim valuation to reflect economic challenges arising from the pandemic.
Corey Rosen
11th Circuit DOL Appeal on ESOP Valuation Case
In Bolton v. Inland Fresh Seafood, No. 1:22-cv-04602AT (N.D. Ga. Dec. 5, 2023), a court dismissed a lawsuit against Inland Fresh Seafood over the valuation of the company when it was sold to the ESOP in 2016 for $92 million.