The U.S. Department of Labor (DOL) on Jan. 16, 2025, released its long-awaited proposed regulation interpreting the definition of "adequate consideration" as applied to private company stock acquired or sold by an employee...more
The U.S. District Court for the Western District of Arkansas issued its written decision in Shipp v. Central States Manufacturing, Inc. on July 5, 2024, declining to dismiss the case against Central States Manufacturing Inc....more
As previously discussed, courts continue to disagree over the enforceability of mandatory arbitration provisions containing class action waivers set forth in benefit plans governed by the Employee Retirement Income Security...more
11/9/2023
/ Arbitration ,
Benefit Plan Sponsors ,
Class Action ,
Class Action Arbitration Waivers ,
Employee Retirement Income Security Act (ERISA) ,
ESOP ,
Federal Arbitration Act ,
Mandatory Arbitration Clauses ,
Petition for Writ of Certiorari ,
Split of Authority ,
Unenforceable Contract Terms
Historically, courts around the country have approached the enforceability of class action waivers and arbitration provisions in ESOP and Employee Retirement Income Security Act of 1974 (ERISA) plan documents differently,...more
9/8/2022
/ Arbitration ,
Breach of Duty ,
Class Action ,
Class Action Arbitration Waivers ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employment Litigation ,
ESOP ,
Fiduciary Duty ,
Mandatory Arbitration Clauses ,
Plan Documents ,
Putative Class Actions ,
Statutory Remedies
In Halperin v. Richards, the U.S. Court of Appeals for the Seventh Circuit considered whether the Employee Retirement Income Security Act of 1974 (ERISA) preempted certain state-law corporate liability claims against officers...more
8/24/2021
/ Breach of Duty ,
Business Valuations ,
Commercial Bankruptcy ,
Conflicts of Interest ,
Corporate Liability ,
Employee Retirement Income Security Act (ERISA) ,
ERISA Litigation ,
ESOP ,
Fiduciary ,
Financial Adviser ,
Preemption ,
State Law Claims
Courts have struggled through the years when considering the enforceability of mandatory class action waivers and arbitration provisions contained within Employee Retirement Income Security Act of 1974 (ERISA) plans and other...more
4/1/2021
/ Appeals ,
Arbitration ,
Breach of Duty ,
Class Action ,
Class Action Arbitration Waivers ,
Contract Terms ,
Employee Retirement Income Security Act (ERISA) ,
Employment Contract ,
ERISA Litigation ,
ESOP ,
Federal Arbitration Act ,
Fiduciary Duty ,
Motion to Compel ,
Split of Authority ,
Unenforceable Contract Terms
The U.S. District Court for the Northern District of California entered summary judgment on July 6, 2020, in favor of defendants who sold stock to an employee stock ownership plan (ESOP) and faced liability under the Employee...more