If you would like to discuss how this case might affect your rights or if you have any questions about ESOP fraud in general, please complete our brief questionnaire or contact us here to schedule a time to speak with one of our attorneys.
Summary of the Lawsuit
This lawsuit, brought on behalf of participants and beneficiaries of the Choate Construction Company Employee Stock Ownership Plan (“ESOP”), alleges numerous violations of the Employee Retirement Income Security Act (“ERISA”) in connection with the sale of sale of Choate Construction Company stock to the ESOP for greater than fair market value.
The Complaint alleges that the executives/owners of the Company (the “Selling Shareholders”) created the ESOP in 2016 in order to sell their ownership interest in the Company to the ESOP/employees for $24.75 a share. The sale of stock in the Company to the ESOP for$24.75 per share occurred on December 13, 2016, which resulted in a total cost of $198 million for the ESOP. The ESOP borrowed $198 million to pay the Selling Shareholders for the stock. Two weeks after the sale of the Company to the ESOP/employees, the 8 million shares of stock were valued at $8.10 per share.
For More Information
If you are a current or former employee of Choate Construction Company, you can get additional information. Please fill out the confidential questionnaire below and we will contact you within two to three business days to schedule a phone call with one of the attorneys involved.
The attorneys investigating this matter are Julie Selesnick (admitted in Massachusetts and D.C.) and Michelle Yau (admitted in Massachusetts, Illinois and D.C.). Click here to read an article “Is My ESOP Account at Risk?” on The Cohen Milstein Benefits Blog.
In addition to completing the confidential questionnaire form above, please feel free to contact us with any additional questions.
Ciara O’Neill – firstname.lastname@example.org
Julie Selesnick – email@example.com
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Suite 500, West Tower
Washington, D.C. 20005
Tel: (888) 240-0775 or (202) 408-4600
Fax: (202) 408-4699