Loren D. Stark Company
Randall & Hurley, Inc.
EPIC Retirement Plan Services
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
|Law Firm Implicated in New Suit Involving ESOP|
Mar. 8, 2015
"The nine-count complaint, filed Feb. 27 in the U.S. District Court for the Southern District of Mississippi, challenges a settlement agreement between [a company sponsoring an ESOP] and its liability insurers, which allegedly thwarted the plan's ability to collect on its $6.5 million judgment [against the company's owner].... According to the participant, the ... attorneys negotiated a settlement agreement between the company and its insurers that required the insurers to use the policy coverage to pay the company's legal fees in defending twin suits challenging the ESOP valuation. The defendants allegedly kept this agreement a secret from the plaintiffs in the ESOP suits, causing [the firm] to continue racking up legal fees that ultimately depleted the amount of promised coverage, leaving nothing left to pay the eventual $6.5 million judgment in favor of the plan."
|Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).|
|An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).|