Electrical Contractor Sued Over Low-Yield Stock Plan Investments

A former Wilson Electric Services Corp. worker filed a proposed class action challenging how the company invests the money in its employee stock ownership plan that isn’t held in company stock.

Wilson, an Arizona-based electrical contractor, invested about $12 million worth of stock plan assets in bank deposit and money market accounts that returned less than 0.5% per year, according to a complaint filed Wednesday in the US District Court for the District of Arizona. These types of “cash equivalent” investments may be appropriate for investors with short-term objectives who need to preserve their principal balance and mitigate risk, but ...