Segerdahl Employee Stock Plan Class Action Fails After Trial

Employees of an Illinois printing company failed to prove at trial that company directors and Greatbanc Trust Co. breached their legal duties in connection with a buyout of their employee stock ownership plan.

Judge Andrea R. Wood ruled for the defendants on all remaining claims asserted by the 464-person class action, holding after a 14-day trial that certain Segerdahl Corp. executives and directors didn’t act as fiduciaries of the workers’ plan in the course of orchestrating a 2016 transaction in which the company was sold from the plan to an investment firm. And Greatbanc, which served as trustee and had ...