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Argent Trust Denied Arbitration of $242 Million Stock Plan Fight

Nov. 3, 2021, 3:57 PM

Argent Trust Co. lost its bid to send a dispute over its handling of a $242 million stock plan transaction to arbitration, when a Manhattan federal judge ruled the plan’s arbitration provision improperly included a prospective waiver of statutory rights.

The plan document for the Strategic Family Inc. employee stock ownership plan includes an arbitration provision that requires participants to seek relief solely with respect to their individual plan accounts, Judge John G. Koeltl of the U.S. District Court for the Southern District of New York said Tuesday. But this conflicts with the Employee Retirement Income Security Act, which gives ...