Summary of the Lawsuit
This lawsuit, brought on behalf of participants and beneficiaries of the Western Milling Employee Stock Ownership Plan (“ESOP”), alleges numerous violations of the Employee Retirement Income Security Act (“ERISA”) in connection with the sale of Kruse-Western, Inc. to the ESOP for an inflated value, which caused a multi-million-dollar loss to the ESOP.
A federal class action was filed in the United States District Court for the Eastern District of California (1:19-cv-00239) on February 19, 2019. The Complaint alleges that Kruse-Western, Kevin Kruse and John and Jane Does 20-30 (collectively, “the Selling Shareholders”), and the ESOP’s Trustee, GreatBanc Trust Company, breached their fiduciary duties to the participants and engaged in prohibited transactions in connection with the creation and sale of the ESOP in 2015. Specifically, in November 2015, the Selling Shareholders sold 100% of the Kruse-Western, Inc. company stock to the newly-created Western Milling ESOP. Approximately two months later, that stock had dropped nearly 90% in value. The Complaint alleges that, among other things, the 2015 ESOP transaction failed to account for Kruse-Western, Inc.’s liabilities in connection with the recurring contamination of animal feed produced by Western Milling.
Whom to Contact for More Information
If you are a participant in the Western Milling ESOP, or if you have information which might assist us in the prosecution of these allegations, please contact one of the following persons:
Mary Bortscheller, Esq., email@example.com
Tamara Haynes, Paralegal, firstname.lastname@example.org
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W., Suite 500
Washington, D.C. 20005
Telephone: 888-240-0775 (Toll Free) or 202-408-4600