Chris Wingard, an Associate in Kleinbard’s Business & Finance Practice, authored a post on an approved $7,150,000 class settlement for former New England Biolabs, Inc. employees who alleged that the company’s redemption of their ESOP shares was completed at an unfairly low price for the National Center for Employee Ownership (NCEO)’s Employee Ownership Legal Digest. The class consisted of approximately 80 former ESOP participants who had their ESOP shares redeemed by the company between 2017 and 2021. The settlement will result in an average recovery of about $90,000 per affected employee. In exchange for the settlement, the class has agreed to release all current and future claims against the company related to this matter. This settlement demonstrates the crucial relationship between ERISA and corporate fiduciary duties and the importance of consulting with qualified independent legal and valuation advisors before proceeding with certain transactions.
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