October 17, 2025
A California federal judge gave the initial OK to a $2.25 million settlement that aims to shutter a former lighting company worker’s class action claiming the business mismanaged a $25 million asset ownership sale that established its employee stock ownership plan.
U.S. Magistrate Judge Stanley A. Boone handed preliminary approval Thursday to a deal reached by named plaintiff Linna Chea, B-K Lighting Inc., the Lite Star Employee Stock Ownership Plan and the plan’s trustee Prudent Fiduciary Services LLC.
The deal, announced to the court in June, derives its value from a $1.5 million payment to ESOP participants, as well as a $750,000 bump to the lighting company’s stock through the reduction of a loan that helped pay for the transaction at issue in the case.
. . .
Chea is represented by Caroline E. Bressman and Michelle C. Yau of Cohen Milstein Sellers & Toll PLLC and Daniel M. Feinberg of Feinberg Jackson Worthman & Wason LLP.
Read $2.25M Deal in Lighting Co. ESOP Suit Gets Initial Nod.