ERISA Litigation and Employee Stock Ownership Plans: The Evolving Landscape of Claims Against Fiduciaries and Non-Fiduciaries

BARBRI

This CLE course will guide counsel, advisers, trustees, and administrators on procedures and fiduciary responsibilities in employee stock ownership plan (ESOP) transactions and cover recent court rulings. The panel will discuss best practices in satisfying fiduciary duties in ESOP transactions, legal issues that arise, and lessons learned from recent cases to defend against and minimize litigation.

Description

An ESOP is a tax-qualified defined contribution employee retirement benefit plan designed to primarily invest in the stock of the sponsoring employer. ERISA imposes the highest duties known to law on trustees and other fiduciaries of ESOPs as well non-fiduciaries who are involved with the ESOP, and some transactions involving ESOPs have led to regulatory investigations and/or litigation.

Many complex issues arise when an ESOP purchases or sells employer stock. ESOP fiduciaries face essential ERISA fiduciary standards and valuation issues. Non-fiduciaries also need to be cognizant of these issues if they engage in a transaction involving an ESOP.

Most lawsuits concerning these transactions typically involve (1) claims that selling shareholders sold company stock to the ESOP at an inflated price; (2) fiduciaries of the ESOP took insufficient action to protect the interests of participants in connection with ESOP transactions, particularly when the plan sponsor faced financial difficulties; (3) buyers purchased the ESOP's shares for less than they were worth; or (4) ESOP fiduciaries engaged in transactions whereby they profited at the ESOP's expense.

Listen as our panel discusses best practices in satisfying fiduciary duties in ESOP transactions, legal issues that arise, and lessons learned from recent litigation to defend and minimize litigation.

More Information, How to Register