Cohen Milstein Sellers & Toll PLLC is investigating Harrell’s for its ESOP’s initial purchase of the company’s stock from the shareholders for an inflated value, causing a multi-million-dollar loss to the ESOP.
This investigation focuses on losses to the ESOP (meaning losses to your retirement savings) of approximately $132.8 million from the sale of Harrell’s 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 on January 1, 2016 and sold 10,000,000 shares of common stock to the ESOP for $140 million, or $14.00 a share on September 30, 2016. Approximately three months later on December 31, 2016, the shares were valued at $0.72 per share. In other words, the shares of the Company, held by the ESOP, lost 95% of their value in three months. The sale of stock from the Selling Shareholders to the ESOP resulted in a total loss of $132.8 million to the ESOP, and the net assets of the ESOP are valued at negative $128.5 million.
If you are interested in learning more about this investigation or about how you may be affected, please take a moment to fill out the questionnaire below and we will contact you within two to three business days to schedule a phone call with one of our attorneys.
Tamara Haynes, Paralegal – email@example.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