Chris Wingard, an Associate in Kleinbard’s Business & Finance Practice, authored a post on Howell et. al. v. Argent Trust Company 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 how a proposed $2.375 million settlement is awaiting court approval in a class action lawsuit filed by former ESOP participants against Argent Trust Company and its subsidiaries. The lawsuit alleges fiduciary breaches and prohibited transactions under ERISA related to company and ESOP transactions from 2016 to 2021. A remaining claim, tied to a 2021 ESOP redemption, had sought about $38 million in potential recovery. After mediation in March 2025, the parties reached a settlement on August 14, 2025, totaling roughly 8% of the claimed amount to be paid to roughly 1,566 former ESOP participants. The court is now considering whether to certify the settlement class and grant preliminary approval of the settlement, after which class members can object before final approval.
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