This lawsuit alleges that Adams and Associates, Inc. and other fiduciaries of the Adams and Associates, Inc. Employee Stock OwnershipPlan (“Adams ESOP” or “the Plan”) violate ERISA and breached their fiduciaryduties with respect to a transaction in or around September 2012 in which 100%of the stock of Adam and Associates, Inc. was sold to the ESOP.
The Complaint alleges that the Defendants, including theESOP trustee who was convicted of stealing money from other ESOPs, breachedtheir fiduciary duty in causing the ESOP to pay Roy and Leslie Adams more thanfair market value for the Adams and Associates company stock.
Additionally, the Complaint alleges breaches of fiduciaryduty related to the Defendants’ failure to properly investigate the ESOPtrustee and monitor the trustee’s activity. Had Defendants properlyinvestigated and monitored the trustee, they would have discovered the trusteewas accused of embezzling funds from another ESOP at the time of the 2012transaction. The Complaint alleges that Defendants further breached theirfiduciary duty in failing to properly disclose the nature of the trustee’scriminal activity to ESOP participants and to take appropriate action.
This lawsuit is brought on behalf of the following class:
All participants of the Adams and Associates ESOP fromSeptember 2012 (or the date of the Transaction) or any time thereafter whovested under the terms of the Plan and those participants’ beneficiaries.
Excluded from the Plaintiff Class are Defendants and theirimmediate family, any fiduciary of the Plan; the officers and directors ofAdams and Associates or of any entity in which a Defendant has a controllinginterest; and legal representatives, successors, and assigns of any suchexcluded persons.
The Complaint was filed on May 9, 2018. Defendants filed aMotion to Dismiss the Complaint on July 30, 2018. A hearing on the Motion toDismiss is scheduled for December 6, 2018.
Plaintiffs filed an Amended Complaint on October 22, 2018.
On June 27, 2019, Plaintiffs filed a Motion for ClassCertification, which was granted on September 11, 2019.
If you are a member of the proposed class or you haveinformation which might assist us in the prosecution of these allegations,please contact one of the following persons:
R. Joseph Barton, Esq. (firstname.lastname@example.org)
Ming Siegel, Paralegal (email@example.com)
Block & Leviton LLP
1735 20th Street NW
Washington DC 20009
Block & Leviton is co-counsel in this litigation with Feinberg Jackson Worthman & Wasow LLP.