Plaintiffs in ESOP litigation often complain that the ESOP paid too much for its stock in the transactions that established them. When the stock’s value declines after such a transaction, litigation is almost sure to follow. These cases usually involve closely held companies, where there is no public market for the stock, so plaintiffs often sue not only the company and those who sold stock to the ESOP but also plan trustees and others involved in these transactions.
The ERISA Litigation Group has defended ESOP cases for more than two decades, against both private plaintiffs and the Department of Labor. We have defended companies themselves, individual officers and directors, and independent ESOP trustees. Our results are unmatched, with most cases either dismissed or resolved on very favorable terms.