On March 20, 2018, Plaintiffs Manley Gough, Curtis Bryant and John Gouveia filed a motion in the United States District Court for the Northern District of California seeking preliminary approval of a $1.75 million class action settlement on behalf of the participants and beneficiaries of the Tennyson Electric, Inc. Employee Stock Ownership Plan (“Tennyson ESOP”). Plaintiffs in Gough, et al. v. Tennyson, et al., alleged that Defendants engaged in ERISA fiduciary violations in an October 2015 transaction in which Mike Tennyson took back control of the Company from the Tennyson ESOP. In the October 2015 transaction, Mr. Tennyson valued the ESOP’s Tennyson Electric stock at $1 per share. The proposed settlement is equivalent to a $25 per share valuation.
You can read the filed motion for preliminary approval here. See for the report by Law360 here. For more information, or to provide updated contact information, please contact Dan Feinberg.