This lawsuit, Smith v. GreatBanc Trust Company, et al., brought on behalf of participants and beneficiaries of the Triad Manufacturing, Inc. Employee Stock Ownership Plan (“ESOP”), alleges numerous violations of the Employee Retirement Income Security Act (“ERISA”) in connection with the sale of Triad Manufacturing, Inc. to the ESOP for an inflated value, which caused a multi-million-dollar loss to the ESOP.
Plaintiff filed the Complaint on April 15, 2020 in the United States District Court for the Northern District of Illinois (1:20-cv-02350). The Complaint alleges that David Caito, Robert Hardie, and Michael McCormick (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 sale of Triad Manufacturing, Inc. to the ESOP in 2015. Specifically, in December 2015, the Selling Shareholders sold 100% of the Triad Manufacturing, Inc. company stock to the newly-created Triad ESOP. Approximately two weeks later, that stock had dropped nearly 97% in value.
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The attorneys investigating this matter are Michelle Yau (admitted in Massachusetts and the District of Columbia) and Mary J. Bortscheller (admitted in Illinois, Minnesota and the District of Columbia)
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