April 20, 2026
Executives behind a New York-based barbecue chain and its employee stock ownership plan caretaker have agreed to pay $22.5 million to resolve a class action claiming they tanked workers’ savings in a $99 million stock purchase, according to a federal court filing.
The workers behind the case asked a New York federal judge Friday for preliminary approval on the $22.5 million deal reached with Argent Trust Co. and the executives behind W BBQ Holdings Inc., a holding company for restaurant chain Dallas BBQ, arguing the agreement represents a strong recovery for the ESOP participants.
“This case settled on the cusp of trial, after fact discovery, expert discovery, and the vast majority of trial preparation were completed,” the workers said. “In other words, class counsel thoroughly understood the strengths and weaknesses of plaintiffs’ claims and defendants’ defenses. These circumstances further favor approval of the settlement.”
Named plaintiff Jamaal Lloyd sued Argent and the executives behind W BBQ Holdings Inc. in 2022, claiming they cost workers millions in retirement savings by selling 400,000 shares of W BBQ common stock for nearly $99 million in an inflated deal in 2016. The U.S. Department of Labor also separately sued Argent and W BBQ in 2024 claiming the ESOP sale violated the Employee Retirement Income Security Act, and the parties struck a $15 million deal to settle the case in February.
On March 9, the workers told the court that they had also struck a deal with Argent and W BBQ to end their suit, days before trial was set to begin March 16.
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The workers said the settlement they reached with Argent and W BBQ represents a recovery of approximately 71% of the losses they claimed they faced from the ESOP sale, calling the agreement “a result that far exceeds typical recoveries in comparable ERISA class actions.”
Michelle C. Yau, who represents the class, told Law360 that her team is pleased with the “significant” value the settlement presents for workers, if approved.
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The workers are represented by Michelle C. Yau, Kai H. Richter, Daniel R. Sutter, Caroline E. Bressman, Ryan A. Wheeler, Elizabeth McDermott and Michael Eisenkraft of Cohen Milstein Sellers & Toll PLLC.