In 2003, the Segerdahl Corporation ESOP (the “Segerdahl ESOP”) was established, and the Segerdahl ESOP purchased 100% of the outstanding shares of common stock of Segerdahl Corporation (Segerdahl), an Illinois-based direct mail printer that is the “largest company focused on medium and high-volume direct mail printing,” from Segerdahl’s other owners. On December 7, 2016, ICV Partners, an investment capital firm, purchased all of the shares of Segerdahl held by the Segerdahl ESOP for a quoted purchase price of $256 million (the “Purchase Transaction”).
Bruce ...
On September 30, 2015, the Raydon Corporation ESOP (the “Raydon ESOP”) purchased 100% of the outstanding shares of Raydon Corporation (Raydon), a Florida-based military simulation training contractor, for $60.5 million.
Stephanie Woznicki, a former Raydon employee, filed a class action complaint on December 5, 2018, alleging that, among other things, (i) according to the 2015 Form 5500 for the Raydon ESOP filed with the Department of Labor on June 22, 2016, the fair market value of the stock held by the Raydon ESOP was $5.11 million as of December 31, 2015; (ii) Lubbock National ...
On May 6, 2011, the Tobacco Rag Processors, Inc. ESOP (the “Tobacco Rag ESOP”) purchased 100% of the outstanding shares of Tobacco Rag Processors, Inc. (Tobacco Rag), a North Carolina corporation that manufactures and distributes tobacco for use by manufacturers of cigarettes and cigars. The total transaction price was $104 million, of which the Tobacco Rag ESOP paid $82.5 million.
The DOL filed a complaint on May 4, 2017, alleging that Reliance Trust Company, Inc. (Reliance), the ESOP’s discretionary trustee, did not thoroughly understand or analyze Willamette ...
On July 13, 2018, the Court denied the Secretary of Labor’s motion for reconsideration of the Court’s April 17, 2018 dismissal of Count IV of the Secretary’s January 17, 2017 First Amended Complaint filed in Acosta v. Vinoskey.
On April 17, 2018, the Court ruled on Defendants’ Daubert motions to exclude the Secretary of Labor’s expert’s testimony and the parties’ cross-motions for summary judgment filed in Acosta v. Vinoskey.
On July 22, 2010, the BAT Masonry Company, Inc. ESOP (the “BAT ESOP”) purchased 100% (123,000) of the outstanding shares of BAT Masonry Company, Inc. (BAT), a Virginia corporation focused on masonry and construction work, for approximately $13.5 million.
The DOL filed a complaint on August 28, 2015, alleging that, among other things, James Joyner, the BAT ESOP’s special independent trustee, relied on a “flawed” valuation report previously prepared by Sheldrick, McGehee & Kohler LLC (SMK) in approving the transaction, thereby causing the BAT ESOP to pay “vastly ...
On February 12, 2009, the Laser and Skin Surgery Center of New York ESOP (the “LSSCNY ESOP”) purchased 50.06% (i.e., 400,480) of the outstanding shares of the Laser and Skin Surgery Center of New York Management Corp. (LSSCNY), a New York corporation that operates a dermatological surgery center, for $24 million.
The DOL filed a complaint on February 11, 2015, alleging that (i) Samuel Ginsberg (Ginsberg), the LSSCNY ESOP’s trustee, did not meaningfully review Trenwith Valuation, LLC’s (Trenwith) valuation report or understand or question the report’s methodologies or ...
In December 2010, the Sentry Equipment Erectors, Inc. ESOP (the “Sentry ESOP”) purchased 51,000 of the outstanding shares of Sentry Equipment Erectors, Inc. (Sentry), a Virginia corporation that designs and sells soft drink manufacturing equipment, for $20.7 million, thereby becoming the 100% shareholder of Sentry.
The DOL filed a complaint on October 14, 2016, alleging that Evolve Bank and Trust (Evolve) and Michael New, one of Evolve’s lawyers, did not adequately review Capital Analysts, Inc.’s (Capital) report, which contained “substantial errors,” nor did ...
Overview
The DOL's newly issued rules could impact a variety of retirement plan relationships by making a broad class of investment advisers "fiduciaries" under ERISA.
- For the first time, many financial advisers working with retirement plans will be held to higher "fiduciary" standards. To avoid personal liability for a prohibited transaction and significant excise taxes, advisers must comply with the new "best interest" standard when making an investment recommendation. This standard parallels the ERISA fiduciary standards, and requires advisers to act in the plan's best ...
