Court Says Participant Misunderstood Valuation for ESOP Purchase
A federal district court judge found that since shares for the ESOP were purchased with borrowed funds, the subsequent lower...
Tag: employee stock ownership plans
Court Orders Fiduciaries to Restore $6.5 Million to ESOP
The court found as a fiduciary to the ESOP, Evolve Bank failed to notice, question or investigate several red flags...
Court Issues Mixed Ruling in Case Over ESOP Stock Purchase
The court decision highlights the difficulty in determining the fiduciary status of parties and of making claims for equitable relief...
Study Finds Benefits of ESOPs for Employees and Employers
Among other things, workers with employee ownership experienced layoffs six times less often than those without, and employee turnover can...
Severance Agreement Bars Former Employee From Suing Over ESOP
A federal court judge cited a 5th U.S. Circuit Court of Appeals decision in Chaplin v. NationsCredit Corp. that concluded,...
Benefits |
ESOPs More Valuable Than Just a Retirement Savings Vehicle
Employee stock ownership plans (ESOPs) have been shown to provide a higher retirement savings balance than other plan types, and...
Prevention the Key to ESOPs Not Violating Nonallocation Year Rules
The IRS explains that the rules under IRC Section 409(p) are designed to prevent a group of “disqualified persons” from...
ESOPs As a Retirement, and Succession, Plan
ESOPs can help employees amass greater retirement benefits, as well as help business owners keep control in planning for the...
Workers in ESOPs Have Double the Retirement Savings
ESOP participants have an average retirement balance of $170,326, more than twice the $80,339 that other workers have saved
Companies With ESOPs Report Advantages for Business
In addition, 55% of responding companies contributed to their ESOPs an amount equivalent to 11% or more of participants’ pay—far...
Members of Congress Ask Trump to Protect ESOPs
In a letter, members of Congress accuse the DOL of “regulation through litigation” and ask that clear guidance regarding valuation...
Reliance Trust Settles DOL Lawsuit Over ESOP Valuation
The lawsuit alleged that employee stock ownership plan participants overpaid for company stock.
Pro-ESOP Bill Signed Into Law
Among other things, the Main Street Employee Ownership Act focuses on increasing the role of the Small Business Administration (SBA)...
Stock Drop Lawsuit Tied to Allergan-Actavis Acquisition Dismissed
Ruling in favor of a detailed motion to dismiss filed by defendants, the court cites a long list of precedent-setting...
Cactus Feeders ESOP Fiduciaries Agree to Sizable DOL Settlement
Lubbock National Bank, the ESOP’s trustee, has also agreed to take steps that will ensure it fulfills its fiduciary obligations...
Bill Would Encourage Small Businesses to Create ESOPs
The bill would amend Section 7(a) of the Small Business Act, expanding loans to small business employers for the purpose...
ESOP Fiduciaries to Pay More Than $2 Million to Settle DOL Lawsuit
The Department of Labor sued Sonnax Industries, company officers and ESOP fiduciaries Tommy Harmon and Frederick Fritz, and Illinois-based First...
Two ESOP Bills Would Promote Employee Ownership
Both, one in the House and one in the Senate, have bipartisan support
6th Circuit Rules for Eaton Corp. in ESOP Suit
The appellate court agreed with a lower court that plaintiffs did not meet pleading standards set forth in the Supreme...
Tax Reform Bill Could Impact ESOP Deductions
Newly leveraged ESOPs that borrow a large amount relative to their earnings could find their deductible expenses decrease.