Cohen Milstein Sellers & Toll PLLC is investigating Path Medical Center Holdings 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 $207.9 million from the sale of Path Medical Center 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 and sold 1,000,000 shares of common stock to the ESOP for $243.5 million, or $243.50 a share in October 2016. Approximately two months later, on December 31, 2016, the shares were valued at $35.10 per share. In other words, the shares of the Company, held by the ESOP, lost 86% of their value in two months. The sale of stock from the Selling Shareholder to the ESOP resulted in a total loss of $207.9 million to the ESOP, and the net assets of the ESOP are valued at negative $199 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 – 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