Labor Department Cleared for BBQ Chain Stock Plan Settlement

The US Labor Department finalized a settlement with the executives of a barbecue restaurant chain, resolving allegations that the company’s workers got a bad deal through their employee stock ownership plan.

The consent order, signed Tuesday by Judge Denise L. Cote of the US District Court for the Southern District of New York, requires defendants Herbert Wetanson and Gregor Wetanson to pay $1 million to the WBBQ Holdings Inc. ESOP, along with a $100,000 penalty payable to the Labor Department. It also mandates that the debt owed by the ESOP be reduced by $14 million.

• The lawsuit centers on ...