Argent Trust Not Liable for $198 Million Stock Plan Transaction

Argent Trust Co. defeated a proposed class suit over its role in a $198 million stock transaction between Choate Construction Co. and its employee stock ownership plan.

The lawsuit by former Choate employee Sharon Lee is based on a fundamental misunderstanding of the transaction, Chief Judge Terrence W. Boyle of the U.S. District Court for the Eastern District of North Carolina held Aug. 7. Lee and the other stock plan participants benefited from the transaction they challenge, and thus they haven’t suffered an injury that would give them standing to sue, Boyle said.

Lee’s lawsuit claims Argent, which served as ...