Chris Wingard, an Associate in Kleinbard’s Business & Finance Practice, authored a post on a federal court’s decision to deny Wilson Electric Services Corporation and related defendants’ motion to decertify a class in an ongoing lawsuit challenging the ESOP plan committee’s investment in low-yielding money market accounts for the National Center for Employee Ownership (NCEO)’s Employee Ownership Legal Digest. The lawsuit was brought by current and former employees who alleged that the ESOP’s Other Investments Account was imprudently invested in cash, which limited returns to ESOP participants and contradicted the plan’s stated goal of growing retirement savings over time. This ruling demonstrates the challenges that defendants may face when attempting to decertify a class of ESOP participants in suits alleging ERISA violations.
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