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Court Rules Plaintiffs Have to Plead More Than Suspicion of Wrongdoing to Justify Case Proceeding: In recent years, plaintiffs have been seeking to move to discovery in ESOP litigation based largely on complaints of a drop in share price after a transaction. In Plutzer v.

RVR Valuation Case to Go to Trial

Case Over Valuation of Terminated ESOP Shares Can Continue

DOL Files Amicus Brief Opposing Arbitration: The Department of Labor has filed an amicus brief in Cedeno v. Argent Tr. Co., No. 20-CV-9987 (JGK), (S.D.N.Y. Nov. 2, 2021).

In Henry v. Wilmington Trust et al., No. C.A. 19-1925 DM (D.C. Del. June 30, 2023), a district court ruled that a plaintiff (Henry) was not subject to an arbitration clause in the company’s ESOP.

Court Allows ESOP Valuation Case to Proceed: In Gamino v. KPC Healthcare Holdings, Inc. et al., No. 5:20-CV-01126-SB-SHK (C.D. Cal. Jan. 15, 2021), a district court allowed employees of KPC Healthcare to proceed with their lawsuit over an alleged overvaluation.

Stout Risius Must Pay Fiduciary Insurer: In Great American Fidelity Insurance Company v. Stout Risius Ross, Inc. et al., No. 2:19-cv-11294 (E.D. Mi, Nov.

District Court Upholds Arbitration Clause in ESOP Dispute

DOL Issues New Guidance on Proxy Voting in Retirement Plans: The issue of whether trustees can and should override participant directions on offers to buy shares in a proposed acquisition of an ESOP company has been one of the most ambiguous areas of ESOP law and practic

Release of Claims Not Enough to Dismiss Case: In Zavala v. Kruse- Western, Inc., No. 1:19-cv-00239- DAD-SKO (E.D. Cal., Dec. 13, 2021), a district court ruled that GreatBanc Trust and the board of Kruse-Western Inc.