Russelectric Stock Plan Suit Advances as 394-Person Class Action

Former employees of Massachusetts power control systems manufacturer Russelectric Inc. secured class action status in a lawsuit saying their employee stock ownership plan was raided of value after the company founder’s death.

The certified class includes 394 participants and beneficiaries in the Russelectric Inc. Employee Stock Ownership Plan who received a benefit when the plan terminated in 2016, according to a class certification order issued Thursday by Judge Patti B. Saris of the US District Court for the District of Massachusetts.

The defendants—the founder’s children and certain board members, along with plan trustee Argent Trust Co.—said the class couldn’t be ...