Compliance | January 5th, 2022 ESOP Sponsor Settles Allegations of ERISA Violations With the DOL Mohawk Hospital Equipment will transfer $431,000 worth of stock to participants and pay a fine.
Compliance | December 23rd, 2021 Court Denies Summary Judgment for Lawsuit Against ESOP Fiduciaries The judge found that while the plaintiff might have released all his claims with a separation agreement, the lawsuit was...
Compliance | October 11th, 2019 Court Orders ESOP Fiduciary to Complete Fiduciary Training This is in addition to $454,545 in restitution to the plan, paid by the company and its employee stock ownership...
Data and Research | October 4th, 2019 ESOPs Boost Household Wealth Workers between the ages of 18 and 34 who are employee-owners have 92% higher median household wealth relative to workers...
Compliance | August 21st, 2019 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...
Compliance | August 20th, 2019 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...
Data and Research | December 6th, 2018 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
Compliance | October 4th, 2018 Reliance Trust Settles DOL Lawsuit Over ESOP Valuation The lawsuit alleged that employee stock ownership plan participants overpaid for company stock.
Compliance | July 9th, 2018 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...
Compliance | July 2nd, 2018 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...
Compliance | May 9th, 2018 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...
Compliance | March 16th, 2018 Two ESOP Bills Would Promote Employee Ownership Both, one in the House and one in the Senate, have bipartisan support
Compliance | January 9th, 2018 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...
Compliance | December 26th, 2017 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.