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Horizon Bank Sued Over $53 Million Employee Stock Plan Purchase

Oct. 6, 2022, 5:15 PM

Former P.L. Marketing Inc. employees filed a proposed class action accusing Horizon Bank of orchestrating an unfair transaction in which they overpaid for their company’s stock through their employee stock ownership plan.

The lawsuit, filed Wednesday in the US District Court for the Eastern District of Kentucky, challenges a 2017 transaction in which the stock plan purchased 100% of of P.L. Marketing’s stock for $53 million, which was financed by a loan from the company. The employees say this deal, which was allegedly overseen by Horizon, significantly overvalued P.L. Marketing and caused them to lose money when the company’s largest ...