Envision Management Strikes Out in Stock Plan Arbitration Appeal

A proposed class action targeting Envision Management Holding Inc.'s employee stock ownership plan will stay in court after the Tenth Circuit on Thursday rejected the medical imaging provider’s attempt to move the dispute into arbitration.

The arbitration provision in Envison’s stock plan prohibits participants from “effectively vindicating” certain statutory rights guaranteed by the Employee Retirement Income Security Act, including the right to seek relief on behalf of the plan as a whole, the US Court of Appeals for the Tenth Circuit said. Because the complaint filed by plaintiff Robert Harrison seeks this type of statutory relief, the plan’s arbitration provision ...