Assessing the Recent Claims Against Sellers and Other Non-Trustees in Lawsuits Relating to ESOPs

McDermott Will & Schulte

Increasingly, sellers of stock and others who customarily have not been named as defendants alongside employee stock ownership plan (ESOP) trustees are being sued in lawsuits relating to ESOPs. Chris Nemeth and Jane Kim recently presented a webinar to members of the National Center for Employee Ownership (NCEO) analyzing this trend. They discussed the types of claims recently brought against sellers, company executives, outside investors and other non-trustees in recent lawsuits relating to ESOPs, and they offered practical tips for protecting against such lawsuits.

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