Pride Mobility Sued Over Worker Stock Plan’s Low-Yield Holdings

Two former Pride Mobility Corp. employees filed a proposed class action saying the wheelchair and scooter manufacturer mismanaged its employee stock ownership plan by keeping too much money in investments that earned paltry returns.

The portion of the Pride Mobility ESOP that’s not dedicated to holding company stock is invested exclusively in cash equivalents and ultra short-term bonds that returned only about 1% per year, the workers said. These low-yield vehicles, which the workers challenge as unsuitable for long-term retirement savings, caused the plan to lose out on as much as $3.3 million since 2018, according to the lawsuit. ...