Appeals Court to Solve Novel ERISA Issue in Argent Trust Dispute

Argent Trust Co. convinced the Seventh Circuit to hear an immediate appeal of a decision allowing an employee stock ownership plan participant to seek plan-wide relief for an allegedly improper transaction, despite being denied class status.

Argent wants the US Court of Appeals for the Seventh Circuit to undo a decision authorizing a Morton Buildings Inc. employee to seek relief against Argent on behalf of the company’s stock plan. The decision flouted federal class action rules and marked the first time a “conflicted plaintiff” has been allowed to bring representative claims on behalf of a plan, Argent said.

• The Seventh ...