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 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.
Corey Rosen
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
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
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
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
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
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
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.
