RV Company Executives Breached Duties in Worker Stock Plan Deal

The directors of a recreational vehicle rental company violated federal benefits law by orchestrating a “massively one-sided” $105 million transaction with the company’s employee stock ownership plan, a federal judge said after a 16-day trial.

The 2014 transaction, in which RVR Inc.'s corporate directors and sole shareholders sold 100% of the company’s stock to the plan, resulted in the defendants “selling their equity but retaining their positions and complete control over RVR,” Judge Roslyn O. Silver said in an opinion issued Thursday in the US District Court for the District of Arizona. The deal left the stock plan trustee with ...