GreatBanc Trust Co. is accused in a new lawsuit of violating federal benefits law by allegedly causing the McBride & Son Management Co. LLC employee stock ownership plan to sell company stock below fair market value to a related company.
At issue are multiple transactions where plan fiduciaries, including GreatBanc as its trustee, allowed MS Capital—McBride’s parent company—to buy back shares held by the ESOP below fair market value at the expense of the investors, according to a lawsuit filed Nov. 30 in the U.S. District Court for the Northern District of Illinois.
The plan’s primary investment was the shares ...
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