Labor Department Sues Maine Oxy Over Forced Stock Plan Sale

The Department of Labor sued Maine Oxy Acetylene Supply Co. in federal court, claiming the welding supply maker engaged in a scheme to repurchase shares of the company from its employee stock ownership plan for a “fraction of the value” that company executives knew they were worth.

Participants in Maine Oxy’s employee stock ownership plan were forced to sell their 49% stake back to the company for just $3.3 million in 2013, less than a year after the company’s new owners paid $16.7 million for their 51% stake, the DOL alleged. Maine Oxy and the new owners concealed their purchase ...