Raydon Must Face Suit Over $60.5 Million Stock Deal

An employee of Florida defense contractor Raydon Corp. is moving forward with a proposed class action claiming the company’s employee stock ownership plan overpaid for Raydon stock by more than $50 million, according to a decision by a federal judge in Orlando, Fla.

Stephanie Woznicki is advancing nearly all her claims against Raydon, top executives, and Lubbock National Bank, which acted as trustee of Raydon’s employee stock ownership plan. Woznicki accuses the defendants of orchestrating a 2015 transaction in which the ESOP paid $60.5 million for Raydon stock that may have been worth less than $5 million.

The defendants argued ...