Engstrom Lee

https://news.bloomberglaw.com/employee-benefits/sentara-health-sued-over-retirement-plans-stable-value-fund

Sentara Health Sued Over Retirement Plan's Stable Value Fund (1) Hospital system Sentara Health was hit with a proposed class action saying the retirement plan covering its workforce offers a poorly performing and imprudent stable value fund.

“It’s hard to defend a strategy of holding a material amount of assets in cash during that period of time given the rates of return,” Engstrom said. “Losing your purchasing power consistently over time isn’t hedging—that’s actually just losing money.”

Stock Plan Cash Holding Suits Tee Up Questions of Funds’ Purpose A handful of new lawsuits challenging employee stock ownership plans with significant cash holdings could force courts to grapple with the differences between traditional retirement plans and those aimed at giving workers an ownership stake in their companies.

We just sued Pride Mobility Products Corp. on behalf of ESOP participants for mismanaging the Plan's investments. Our investigation is ongoing. If you currently have an account with the ESOP and would like to get involved or learn more, visit engstromlee.com/pridemobility

Scooter Co.'s Mismanagement Cost ESOP Millions, Suit Says - Law360 A scooter company violated federal benefits law by putting too much of workers' retirement funds into investments that produced meager returns and causing its employee stock ownership plan to lose out on about $3.3 million since 2018, a proposed class action filed in Pennsylvania federal court said.

"In a 37-page opinion Wednesday, U.S. District Judge Victoria Marie Calvert denied a motion to compel arbitration from two executives of a360inc, A360 Holdings LLC and Argent Trust Co., which served as the ESOP's trustee. Five ESOP participants filed the Employee Retirement Income Security Act lawsuit in September 2022, alleging a360inc bought nearly 883,000 shares back from the ESOP at $30 per share even though the company was valued at $70 per share."

To learn more about this case, visit engstromlee.com/a360

Legal Tech Execs Can't Arbitrate ESOP Valuation Fight - Law360 A legal technology company's executives and related entities can't arbitrate a proposed class action alleging they undervalued the company's shares when shutting down its employee stock ownership plan, thereby costing participants $35.4 million, a Georgia federal judge ruled, finding the plan's arbi...

We have asked the court to preliminarily approve a $1.1 million settlement in this case. If you participated in the Electric Supply ESOP, left the company, and have since moved residences, please visit our case page, engstromlee.com/electricsupply, to provide an updated mailing address and contact information so that you can stay up to date about this class action