ESOP Litigation: Recent Cases, Legal Theories, Prohibited Transactions, Disputes Involving Service Providers

BARBRI

This CLE course will guide counsel on procedures and fiduciary responsibilities in employee stock ownership plan (ESOP) sales transactions, review recent court rulings, and offer tactics for handling litigation involving ESOPs. 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 benefit plan that invests in the plan sponsor's stock. ERISA provides strict rules for trustees and fiduciaries of ESOPs, and transactions involving ESOPs may lead to regulatory investigations or litigation.

Many complex issues arise when an ESOP purchases or sells stock. ESOP fiduciaries face strict ERISA fiduciary standards that often involve valuation issues. Recent lawsuits concerning ESOP transactions involve claims that (1) selling shareholders sold their stock in the plan sponsor to the ESOP at an inflated price; (2) fiduciaries of the ESOP took insufficient action to protect the interests of participants, particularly when the plan sponsor faced financial difficulties; or (3) management or other purchasers bought the ESOP's shares for less than they were worth.

Counsel must understand key legal theories and potential defenses along with recent trends in ESOP litigation in order to effectively implement appropriate litigation strategies for clients.

Listen as we discuss 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