AMPAM Plumbing Company Workers Get Class in Stock Plan Lawsuit

AMPAM Parks Mechanical Inc. employees secured class action status in a lawsuit saying their employee stock ownership plan overpaid for shares in the plumbing subcontractor and then sold that stock at a depressed price.

The certified class includes about 700 participants with vested accounts in the AMPAM ESOP since August 2023, according to an order issued Tuesday by Judge Kenly Kiya Kato of the US District Court for the Central District of California. The case turns on common issues, including whether the ESOP overpaid for company stock in 2019 and the legality of a subsequent stock sale, Kato said.

The ...