Bailey Glasser Receives Final Approval for $13 Million Settlement to End Bradford Hammacher ESOP Lawsuit
On June 19, Judge Gary Feinerman of the US District Court for the Northern District of Illinois granted final approval of a settlement to end a class action lawsuit against Reliance Trust Company for $13.36 million. The plaintiff, a participant in an employee stock ownership plan (ESOP) sponsored by The Bradford Hammacher Group, Inc., his former employer, alleged that Reliance Trust, the ESOP’s trustee, violated the Employee Retirement Income Security Act (ERISA) when it caused the ESOP to purchase company stock at above fair market value in 2013.
This is the second ESOP case Bailey Glasser has resolved in June. On June 9, Judge Richard Andrews of the US District Court for the District of Delaware approved a settlement of $5 million against Wilmington Trust which was brought by ISCO Industries Inc. workers who accused Wilmington Trust of mishandling a $98 million stock purchase.
The parties reached the $13.36 million settlement after Bailey Glasser and its co-counsel presented their case at the first week of a two-week trial. Bailey Glasser also worked closely with the US Department of Labor, in a two-day mediation and in subsequent settlement discussions, to obtain this meaningful addition to the ESOP participants’ retirement accounts. The proceeds from the settlement will be allocated among the eligible participants/class members.
Bailey Glasser lawyers Brian Glasser, Gregory Porter, Ryan Jenny, and Patrick Muench represented the plaintiff and class members in this case. Co-counsel included Mark Kindall, Robert A. Izard and Douglas P. Needham of Izard Kindall & Raabe LLP.