Raydon Corp. and its two top executives are accused of violating federal benefits law by allowing the company’s retirement plan to pay more than fair market value for company stock.
Raydon executives, Donald K. Ariel and David P. Donovan, allegedly sold Raydon stock to the employee stock ownership plan for $60.5 million in 2015.
Months later, the company informed the Labor Department the fair market value for the stock held by the plan was only $5.1 million.
The transaction wasn’t designed to be in the best interest of plan investors, a former Raydon worker alleged in a lawsuit filed Dec. ...
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