Judge Approves $5 Million Settlement in Wilmington Trust ESOP Lawsuit
On January 21, Judge Richard Andrews, US District Court for the District of Delaware, granted preliminary approval to end a class action lawsuit against Wilmington Trust for $5 million. The suit was brought by ISCO Industries Inc. workers who accused Wilmington Trust of mishandling a $98 million stock purchase by ISCO’s employee stock ownership plan (ESOP) which was prohibited under the Employee Retirement Income Security Act (ERISA).
Each class member of the lawsuit will receive a portion of the settlement sized according to the amount of stock owned through the plan. The settlement resolves claims that Wilmington Trust allowed ISCO’s ESOP to overpay for 4 million shares of company stock in 2012. Law360 covered the settlement which can be read here (subscription required).
Bailey Glasser lawyers Gregory Porter, Ryan Jenny, Patrick Muench, and David Felice represented the class members in this case.