Summary of the Lawsuit
This lawsuit alleges that Ritchie Trucking Service Holdings, Inc. (“Ritchie Holdings” or the “Company”) and other fiduciaries of the People Business Employee Stock Ownership Plan (the “ESOP” or the “Plan”) violated the Employee Retirement Income Security Act of 1974 (“ERISA”) and breached their fiduciary duties with respect to a transaction on December 31, 2018, which caused the ESOP to purchase Company stock for more than fair market value.
Summary of the Claims
Before December 31, 2018, Ritchie Holding’s largest client announced that they were making changes that would decrease Ritchie Holding’s market share and revenue. Despite these changes, the owners of Ritchie Holdings sold the Company to the ESOP on December 31, 2018 for $19,573,000 for 2 million shares of Company stock. Had the company executives provided this information to the ESOP’s advisors and the Trustee performed a prudent investigation, the ESOP would not have purchased the Company stock for more than fair market value.
Class Action Allegations
This lawsuit is brought on behalf of the following Class:
All participants in the ESOP from December 31, 2018, or any time thereafter (unless the participant terminated without vesting) and those participants’ beneficiaries.
Excluded from the Class are (a) Defendants, (b) any fiduciary of the Plan; (c) the officers and directors of Ritchie Trucking or of any entity in which the individual Defendants have a controlling interest; (d) the immediate family members of any of the foregoing excluded persons, and (e) the legal representatives, successors, and assigns of any such excluded persons.
Status of the Litigation
The Complaint was filed on December 30, 2021.
Whom to Contact for More Information
If you are a member of the proposed class or you have information which might assist us in the prosecution of these allegations, please contact one of the following persons:
R. Joseph Barton, Esq. (email@example.com)
Colin M. Downes, Esq. (firstname.lastname@example.org)
Ming Siegel, Paralegal (email@example.com)
Block & Leviton LLP
1633 Connecticut Ave. NW, Suite 200
Washington, DC 20009
Vincent Cheng, Esq. (firstname.lastname@example.org)
Block & Leviton LLP
100 Pine Street, Suite 1250
San Francisco, CA 94111
Contact our attorneys for a no-cost case evaluation.