BG ERISA Team Protects Retirees From Boilerplate Arbitration Demand
Bailey Glasser’s ERISA litigation team scored a victory for retirement plan savers Monday, when U.S. District Court Judge Steven Grimberg rejected efforts by fiduciaries to The North Highland Company Employee Stock Ownership (ESOP) and 401(k) Plan to require its former employees to arbitrate claims related to the company ESOP.
The case hinged on the “effective vindication doctrine”, the idea that the Plan’s arbitration provision barred Plan-wide relief and, therefore, is unenforceable because it takes away rights and remedies available under the governing federal law, the Employee Retirement Income Security Act (ERISA). Plaintiffs allege improper dilution of the ESOP’s ownership interest in North Highland in order to give increasing ownership to certain North Highland executives and the subsequent undervaluing of the ESOP’s stock in a 2021 transaction in which the ESOP’s diluted shares were sold.
Plaintiffs are represented by Greg Porter, head of Bailey Glasser’s ERISA group, as well as Bailey Glasser attorneys Mark Boyko, Ryan Jenny, and Laura Babiak.