BG Secures Final Approval of $4 Million Settlement in Morton Buildings ESOP Litigation

Bailey & Glasser, LLP has secured final approval of a $4 million settlement in an ERISA case involving the Morton Buildings, Inc. Leveraged Employee Stock Ownership Plan (ESOP). The settlement resolves allegations that the ESOP trustee, Argent Trust Company, breached its fiduciary duties and engaged in prohibited transactions under the Employee Retirement Income Security Act of 1974 (ERISA).

Bailey Glasser represents Jackie Lysengen, who filed a lawsuit on behalf of the participants in the case Jackie Lysengen v. Argent Trust Company, et al., filed in the United States District Court for the Central District of Illinois. The lawsuit sought relief for losses to the ESOP and its participants caused by alleged ERISA violations in connection with the ESOP’s overpriced purchase of Morton Buildings stock in May 2017 and also claimed that Argent was liable for breaching its fiduciary duties and causing prohibited transactions under the statute.

The case was led by Gregory Y. Porter, leader of the firm’s ERISA & Employee Benefits Practice Group, with support from partners Ryan T. Jenny and Patrick O. Muench, and lawyer Laura Babiak.

“This settlement is an important victory for ESOP participants,” said Gregory Porter. “It reflects our commitment to ensuring that retirement plans are managed in the best interests of employees, as the law requires.”

Bailey Glasser has a nationally recognized ERISA litigation practice that has recovered hundreds of millions of dollars for workers, retirees, and their families. You can learn more about our ERISA and Employee Benefits & Trust Litigation practice here. 

To learn more about this case, including viewing key court filings, visit our Morton Buildings, Inc. Leveraged ESOP Case page.