Chris Wingard, an Associate in Kleinbard’s Business & Finance Practice, authored a post on the dismissed class action lawsuit, MacTaggert v. Professional Fiduciary Servs., LLC, 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. In this case update, the claim alleged that the ESOP’s trustee, Professional Fiduciary Services, LLC (PFS), breached ERISA duties by authorizing the purchase of company stock in a 2019 ESOP transaction at an allegedly inflated price. The suit was dismissed for lack of standing and for failure to state a claim, with the court finding that the plaintiff failed to allege an injury-in-fact. The dismissal of the case is significant as it demonstrates how general and speculative claims regarding ESOP transactions will not prevail in court.
To read the full summary, click here.
