GreatBanc Hit With Class Suit Over $106 Million Stock Plan Deal

A lawsuit filed in the Northern District of Illinois accuses GreatBanc Trust Co. of mishandling a stock plan transaction that caused employees of Triad Manufacturing Inc. to pay $106 million for employer stock that may have been worth less than $4 million.

The class action complaint, filed Wednesday by former Triad employee James Smith, claims GreatBanc signed off on the deal without performing adequate due diligence. GreatBanc, which allegedly represented the Triad employees by serving as the stock plan trustee, disregarded structural problems and failed to account for Triad’s “shrinking customer base due to the widespread closure of retail stores,” ...