For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Compliance July 5, 2007
DoL Settles ESOP Mismanagement Lawsuit
July 5, 2007 (PLANSPONSOR.com) - The participants in
Cambar Software Inc.'s (CSI) Employee Stock Ownership Plan
(ESOP) will have $760,000 restored to them as part of a
settlement agreement with the U.S. Department of Labor
(DoL).
Reported by Adrien Martin
The 2006 lawsuit alleged that Hagemeyer North America Inc., GreatBanc Trust Co., and members of the CSI plan administrative and advisory committees violated the Employee Retirement Income Security Act (ERISA) by mismanaging two ESOPs sponsored by Cameron & Barkley Co. (C&B).
According to a press release from the DoL, in addition to returning money to the plan, the settlement agreement calls for plan officials to pay $76,000 in civil penalties.
C&B provided maintenance, repair and operating products in the electrical construction industry, and it created CSI as a software and consulting services company.
CSI employees were covered by the C&B ESOP until C&B merged with Hagemeyer in 2000. CSI was not part of the merger and its employees were spun off to a new ESOP. The alleged violations occurred at the time of C&B’s merger with Hagemeyer, the release said.