Class Action Filed Against Fiduciaries of Adams and Associates ESOP

On May 9, 2018, Feinberg, Jackson, Worthman & Wasow LLP and co-counsel Block & Leviton LLP filed a complaint on behalf of 2,000 participants in the Adams and Associates, Inc. Employee Stock Ownership Plan. The complaint alleges that the defendants – including a trustee who is now in federal prison for stealing money from other ESOPs – caused the Adams and Associates ESOP to pay Roy and Leslie Adams more than fair market value for company stock in 2012. Plaintiffs Carol Foster and Theo Foreman contend that the Adams and Associates has lost millions of dollars as a result of defendants’ fiduciary violations. The plaintiffs also contend that Adams and Associates has concealed from employees the fact that the ESOP’s trustee for the 2012 transaction was accused of embezzling funds from another ESOP at the time of the transaction. Additional details about the complaint were reported in Law360 on May 11, 2018. You can read it here. For additional information, please contact Dan Feinberg.