Participants in Bankrupt Company’s ESOP Can’t Offload Shares
A federal district court found that, although the confirmed reorganization plan for the company was ambiguous as to whether ESOP...
Tag: ESOP
Another Firm Targeted by DOL Over Inaccurate ESOP Valuations
An Ohio-based transportation and logistics company is accused of overpricing its company stock by nearly $6 million.
Sponsor Facing Sizable Settlement for Poor ESOP Valuations
Count employer stock purchases within ESOPs among the activities receiving significant scrutiny from participants, regulators and litigators.
Appellate Court Affirms Fiduciaries' Liability for Mispriced ESOP Purchase
Among other things, the court found Herbert C. Bruister fired the ESOP’s counsel for being “too thorough,” and caused his...
Kodak Settles Stock Drop Suit for Nearly $10M
The lawsuit claims that when Kodak filed for bankruptcy protection in January 2012, it failed to take action to protect...
ESOP Participants Failed to State Claim Under Fifth Third Standard
A district court found the requirement to allege an alternative action in a stock drop case applied to participants in...
Court Restricts ESOP Attorney’s Ability to Represent Plans
The attorney’s alleged contempt arose from a lawsuit against Herbert Bruister and others for various breaches of fiduciary duties that...
Gruber Systems Ordered to Pay for Improper ESOP Purchase
The DOL won a consent judgment and order valued at $1.1 million on behalf of participants in a Gruber Systems...
SCOTUS Again Remands Stock Drop Case
The Supreme Court returned Amgen’s ESOP case to the lower court for a second time.
DOL Sues Sponsor Over Company Stock Valuation
The DOL is asking a Florida district court to take action against an employer accused of inflating its fair market...
Number of ESOPs Down, Number of Participants Up
While the number of plans identified as ESOPs has decreased, the number of active participants has steadily increased, NCEO data...
ESOP Participants’ Breach Claims Not Supported
Participants in an ESOP that purchased shares with a loan from the sponsoring employer made allegations that were not backed...
DOL Accuses ESOP Fiduciaries of Prohibited Transactions
A lawsuit says BAT Masonry was valued at $13 million less than what its ESOP paid for company stock.
Webcast to Cover Updates to IRS Employee Plans Programs
The agency is hosting a free webcast in which the determination letter program and new pre-approved plan document programs will...
11th Circuit Reaffirms Delta Air Lines Stock Drop Victory
Circuit court sees no need to change a previous ruling in a stock drop case, reconsidered in light of the...
PBI Bank Settles with DOL over ESOP Transaction
PBI Bank will no longer serve as a trustee or service provider for any plan covered by ERISA, with a...
ESOP Sponsor May Have Had Heightened Duty to Disclose
A court has found questions exist about whether a privately-held company had a duty to disclose a contemplated merger to...
Report Rounds Up Retirement Reform Needed
A working group established by the Senate Committee on Finance shows support for a number of proposals to reform the...
DOL Sues Firm Over Company Stock Purchases
The Labor Department filed suit against a California-based manufacturer to recover millions of dollars for ESOP plan participants.
IRS Expands Pre-Approved Plans Program
Cash balance plans and ESOPs can now be submitted for an approval letter from the IRS.