Aerotech Sued Over Low-Yield Investments in Employee Stock Plan

Three former Aerotech Inc. workers filed a proposed class action saying their employee stock ownership plan was mismanaged because it parked too much money in cash-like investments that paid paltry returns.

The lawsuit, filed Wednesday in the US District Court for the Western District of Pennsylvania, challenges how Aerotech invests the portion of the plan that’s not dedicated to holding stock in the company.

According to the workers, the company put more than $10 million of the plan’s assets in “cash equivalents” that returned less than 1.5% between 2018 and 2023. This “unusual and imprudent” strategy wasn’t a suitable ...