Overview
Cohen Milstein is conducting an investigation of the Choate Construction Company Employee Stock Ownership Plan (ESOP). The company may have violated 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.Based on publicly available documents filed with the U.S. Department of Labor in 2016 the ESOP/employees paid $24.75 a share for the Choate stock on December 13, 2016, at 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, in DOL filings, the Choate stock were reported to be valued at $8.10 per share (versus the $24.75 per share two weeks before).
Retirement savings of participants in the Choate ESOP may have been affected by the use of retirement assets to purchase the company by the ESOP.
For More Information
If you are a current or former employee of Choate Construction Company, you can get additional information.
The attorney investigating this matter is Michelle Yau (admitted in DC and MA). Read “Is My ESOP Account at Risk?” on The Cohen Milstein Benefits Blog.
Please feel free to contact us with any additional questions.
Doron Hadar – dhadar@cohenmilstein.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