Settlement Reached in Lawsuit Alleging Imprudent Sale of ESOP Assets
ESOP plan committee and Republic Services defendants, as well as GreatBanc Trust Co., have agreed to a $7.9 million payment.
Tag: ESOPs
DOL, Wilmington Trust Reach Agreement Over ESOP Overpricing
The agreement requires Wilmington Trust to pay $80 million to 21 employee stock ownership plans (ESOPs) for which it served...
Monitoring DC Plans’ Company Stock Investments During Market Volatility
Decisions for 401(k) plan sponsors with company stock on their investment menus are different than those for sponsors of true...
Insurance Company to Pay $3 Million to ESOP for Alleged Share Overpayment
The DOL alleges that the company’s president influenced an appraiser’s valuation and the ESOP’s trustee didn’t do his due diligence...
Reliance Trust ESOP Lawsuit Clears Dismissal Motion
The Department of Labor alleges various failures and points of wrongdoing associated with sale of company stock to RVR Inc....
Settlement Announced in Case About Forcing Participants Out of ESOP
The case has been stayed until the parties can draft the settlement agreement.
Wilmington Trust Agrees to Settle ESOP Lawsuit
It has agreed to pay $5 million into a settlement fund.
Reducing the Risk of ESOP Investigations and Litigation
An NCEO report provides details about DOL investigations and litigation against ESOPs and provides considerations for ESOP valuations.
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...
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...
Opinions |
Pairing ESOPs With 401(k)s Can Heighten Retirement Outcomes
Trevor Bare, with Conrad Siegel, discusses the differences between ESOPs and 401(k) plans and how offering both can better prepare...
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...
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...
Stock-Drop Lawsuit Targeting IBM Revived and Remanded
An appellate court has taken the rare step of overturning a successful motion to dismiss a stock drop lawsuit targeting...