This investigation focuses on losses to the ESOP (meaning losses to your retirement savings) of approximately $133 million from the sale of Choate Construction Company stock to the ESOP for greater than fair market value. According to records filed with the Department of Labor, 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. However, because the ESOP did not have $198 million to pay for the Selling Shareholders for the Company, the ESOP borrowed $198 million. 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. This means that the stock lost two thirds of its value in just two weeks, for a total loss to the ESOP of $133 million.
If you are a participant in the Choate Construction Company ESOP, your retirement savings have been affected by the purchase of the Company by the ESOP (your retirement assets) for three times the true value of the Company. Cohen Milstein Sellers & Toll PLLC is investigating the sale of stock to the ESOP and seeks to represent employees in recovering the $133 million in losses suffered by the ESOP. If you are a current or former employee of Choate Construction Co., we would be interested in speaking to you regarding this investigation. The exact nature of your legal situation will depend on many facts not known to us at this time. You should understand that the advice and information in this communication is general and that your own situation may vary. There is no charge to you to talk to us.
Please take a moment to 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 leading our investigation.
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 – email@example.com
Julie Selesnick – firstname.lastname@example.org
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