• videocam On-Demand Webinar
  • signal_cellular_alt Intermediate
  • card_travel ERISA
  • schedule 90 minutes

ESOP Litigation: Recent Cases, Legal Theories, Prohibited Transactions, Disputes Involving Service Providers

$347.00

This course is $0 with these passes:

CLE
ALL
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About the Course

Introduction

This CLE course will guide counsel on procedures and fiduciary responsibilities in employee stock ownership plan (ESOP) sales transactions, review recent court rulings, and offer tactics for handling litigation involving ESOPs. David Johanson will discuss best practices in satisfying fiduciary duties in ESOP transactions, legal issues that arise, and lessons learned from recent cases to defend against and minimize litigation.

Description

An ESOP is a tax-qualified defined contribution employee benefit plan that invests in the plan sponsor's stock. ERISA provides strict rules for trustees and fiduciaries of ESOPs, and transactions involving ESOPs may lead to regulatory investigations or litigation.

Many complex issues arise when an ESOP purchases or sells stock. ESOP fiduciaries face strict ERISA fiduciary standards that often involve valuation issues. Recent lawsuits concerning ESOP transactions involve claims that (1) selling shareholders sold their stock in the plan sponsor to the ESOP at an inflated price; (2) fiduciaries of the ESOP took insufficient action to protect the interests of participants, particularly when the plan sponsor faced financial difficulties; or (3) management or other purchasers bought the ESOP's shares for less than they were worth.

Counsel must understand key legal theories and potential defenses along with recent trends in ESOP litigation in order to effectively implement appropriate litigation strategies for clients.

Listen as our expert presenter discusses best practices in satisfying fiduciary duties in ESOP transactions, legal issues that arise, and lessons learned from recent litigation to defend and minimize litigation.

Presented By

David R. Johanson
Chair Employee Benefits & ERISA Group
Hawkins Parnell & Young

Drawing on 40 years as an advisor and litigator, Mr. Johanson provides strategic and practical legal counsel on employee ownership, executive compensation, equity incentive plans, non-qualified deferred compensation, and employee stock ownership plans. He advises on mergers and acquisitions, tax planning, business succession, estate planning, shareholder disputes, and non-competition issues, among other corporate and ERISA-related matters. Mr. Johanson defends companies and executives in complex business, employment, and class action disputes in federal and state courts nationwide. He has represented clients before regulatory agencies such as the U.S. Department of Labor, Internal Revenue Service, and Equal Employment Opportunity Commission, handling tax controversies, felony criminal indictments, and diverse ownership and business dispute resolutions. He also routinely defends ERISA fiduciaries, plan sponsors, selling shareholders, and investment and valuation advisers in high-stakes litigation spanning ESOP valuation disputes, fiduciary responsibilities, disclosure obligations, and investment issues. In addition, Mr. Johanson has argued cases before the U.S. Courts of Appeals for the Third, Fifth, Seventh, and Ninth Circuits and filed multiple petitions for writ of certiorari with the U.S. Supreme Court. Nationally recognized for his expertise and leadership in the ESOP field, he leads an innovative team that has handled more than 750 ESOP transactions. 


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Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Wednesday, November 29, 2023

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Fiduciary duties, policies, and procedures of ESOP transactions
  2. Recent court rulings and developments
  3. Key ESOP litigation tactics and missteps to avoid
  4. Best practices for defending and minimizing litigation

The panel will review these and other key issues:

  • Recent ESOP litigation, including new theories of liability
  • Critical steps during an ESOP transaction to avoid litigation risks
  • Handling ESOP litigation and pitfalls to avoid, including important privilege issues in the evidentiary record for an ESOP transaction