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: Ross' Employment Law BlogDOL claims stock transactions violated ERISA
The US Department of Labor has sued the trustees of the employee stock ownership plans and a number of ERISA plans of DirecTECH Holding Co, its former subsidiaries, the companies' boards of directors, and the parties who sold stock at inflated prices to the plans for alleged violations of the Employee Retirement Income Security Act (ERISA).
DOL alleges that the defendants imprudently used the plans' assets to purchase company stock in seven separate transactions at inflated prices that caused millions of dollars of losses to the plans and their participants while enriching those defendants who sold the stock to the plans.
Full post as published by Ross' Employment Law Blog on December 14, 2009 (boomark / email).
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