On March 30, 2020, Feinberg, Jackson, Worthman & Wasow LLP filed an amicus curiae brief on behalf of the Pension Rights Center in the U.S. Court of Appeals for the Fourth Circuit in support of the Plaintiff-Appellant in Lee v. Argent Trust Company (Case No. 19-2485). The plaintiff alleges that the trustee of her employee stock ownership plan (ESOP) permitted the ESOP to pay more than fair market value for company stock in a transaction with the company’s top officers and directors. The district court dismissed the lawsuit for lack of standing because it decided –without reviewing any evidence –that the Plaintiff could not have suffered any economic loss. The Pension Rights Center amicus brief argues that the Plaintiff’s allegations that the ESOP paid more than fair market value are plausible and that she should be entitled to take discovery prior to a decision on the merits. The brief also provides the Court with background information regarding common problems arising from private company ESOP transactions. The amicus brief may be found here and the Bloomberg Law story about the amicus brief is here. For more information about ESOPs, please contact Dan Feinberg or Nina Wasow.
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