Bailey Glasser’s ERISA team achieved another litigation win in the fight to protect employee retirement funds. In an order issued Tuesday, a North Carolina federal judge denied industrial refrigeration company, Morris & Associates’ motion to dismiss former CEO Bryan John’s ERISA case that alleged the company mismanaged an employee stock ownership plan by grossly undervaluing the business.
According to a Law360 article covering the ruling, the court found that the plaintiff could still sue on behalf of the plan even if he’s no longer a trustee because he is still a plan participant.
Bailey Glasser partner Mark Boyko, who is representing Mr. Johns, told Law360 he is “looking forward to seeing the case resolved on the merits.”
Originally filed in June, the lawsuit against Morris & Associates and nine ESOP trustees, alleged that the family company’s patriarch used the company and the plan to benefit himself and his family by undervaluing the company and issuing bonuses and high salaries not approved by the ESOP trustees, which hurt employee shares.
Read the full Law360 article here.
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