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
Most ESOP companies have 401(k) plans, so a recent IRS private letter ruling (PLR 202434006) may be of interest.
Corey Rosen
In Su v. Alerus Fin., N.A., No. 1:23-cv-00537-DCN (D. Idaho Nov. 4, 2024), the Department of Labor (DOL) plausibly alleged that Alerus, the trustee for the ESOP at Norco, improperly approved a valuation in a transaction in which Norco’s ESOP paid more than $140 million for a 35% stake in the company.
Corey Rosen
On October 7, 2024, the Supreme Court denied an appeal of the denial of an arbitration clause in an ESOP.
Corey Rosen
The IRS has released plan limits for 2025.
Corey Rosen
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
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
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
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
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
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.
