Chris Wingard, an Associate in Kleinbard’s Business & Finance Practice, authored a post on the ongoing litigation involving Russelectric Inc.’s ESOP for the National Center for Employee Ownership (NCEO)’s Employee Ownership Legal Digest. The case was initially filed in 2022 on behalf of former ESOP participants and the ESOP itself and alleged multiple breaches of ERISA fiduciary duties by defendants related to Russelectric Inc.’s redemption and termination of the ESOP in 2016 and the subsequent 2019 sale of the company. Most recently plaintiffs filed an unopposed motion for preliminary approval of a $5.55 million class action settlement with certain defendants. When combined with the value of the prior settlement, the average gross participant recovery in this case increases to $36,928 per participant. The court will hear objections to the proposed settlement from members of the class and other interested parties.
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