RVNB Holdings Stock Plan Dispute Stays in Court, Not Arbitration

A lawsuit involving the employee stock plan of moving company All My Sons Moving & Storage will be heard in court after a federal judge found the plan’s arbitration requirement unenforceable.

The provision is invalid and can’t be used to force the lawsuit into arbitration because it blocks the participants from “effectively vindicating” their statutory rights under ERISA, Judge Ada Brown of the US District Court for the Northern District of Texas said Wednesday.

The arbitration clause in RVNB Holdings Inc.'s employee stock ownership plan includes the waiver of the right to bring a class action, which prevents the plaintiffs ...