Western Milling ESOP Litigation
Zavala v. Kruse-Western Inc. et al. (E.D. Cal.): We represent participants and beneficiaries of the Western Milling Employee Stock Ownership Plan, who allege that the ESOP’s trustees breached their fiduciary duties by engaging in risky investments in violation of ERISA, including purchasing 100% of Kruse-Western, Inc. company stock, which was valued at approximately 90% of the purchase price for several years after the ESOP Transaction.
Envision Management Holding, Inc. ESOP Litigation
Harrison v. Envision Management Holding, Inc. Board of Directors, et al. (D. Col.): Cohen Milstein represents a certified class of Envision Management Holding ESOP participants, who allege the ESOP purchased Envision Management Holding stock at an inflated price, causing a multi-million-dollar loss to the ESOP.
AMPAM Parks Mechanical ESOP Litigation
Ramirez, et al. v. AMPAM Parks Mechanical, Inc., et al. (S.D. Cal.): Cohen Milstein represents employee participants and beneficiaries of the AMPAM Parks Mechanical, Inc. Employee Stock Ownership Plan in a certified class action lawsuit alleging that AMPAM Parks Mechanical and the founders of AMPAM, Buddy Parks, John D. Parks, James Parks, and Jason Parks breached their fiduciary duties in the management of the ESOP in violation of ERISA.
BDO USA ESOP Litigation
Taylor v. BDO USA (D. Mass.): Cohen Milstein represents participants and beneficiaries of the BDO USA Employee Stock Ownership Plan in a putative ERISA class action. Plaintiff alleges that BDO USA’s board of directors ensured that control of BDO was kept in the hands of management rather than the ESOP, used inflated revenues to value BDO, and engaged in a self-dealing transaction involving the ESOP purchasing 42% of the company’s common stock for approximately $1,300,000,000 – a purchase price that exceeded fair market value.
BNBuilders ESOP Litigation
Schlueter v. BNBuilders, Inc., et al. (W.D. Wash.): Cohen Milstein represents an employee participant of the BNBuilders ESOP in a class action, alleging that Brad Bastian and the former owners of BNBuilders created the ESOP for the express purposes of selling 100% of their shares of the company for $206,508,990 to provide themselves liquidity while retaining ownership and control of the company in violation of ERISA.