Chris Wingard, an Associate in Kleinbard’s Business & Finance Practice, authored a post on Dalton et al. v. Freeman for the National Center for Employee Ownership (NCEO)’s Employee Ownership Legal Digest. The NCEO’s Legal Digest provides summaries of key cases, rulings, and legal developments impacting employee ownership. The case summary explains that the U.S. District Court for the Eastern District of California has partially denied Alerus Financial N.A.’s motion to dismiss plaintiffs’ first amended complaint, which alleged fiduciary breaches in connection with a series of ESOP transactions. The court previously granted Alerus’s original motion to dismiss, with the plaintiffs then filing the first amended complaint that was the subject of this decision. The court granted Alerus’ second motion to dismiss in part but allowed the core allegations – related to claims that Alerus breached its fiduciary duties – to proceed. The case will now move to the next stage of litigation to determine the validity of the remaining claims.
To read the full article, click here.
