Steel Processing Stock Plan Purchase Lawsuit Gets Green Light

A former steel processing company employee advanced most of his proposed class action challenging a $60 million stock purchase by the company’s employee stock ownership plan.

Judge George Caram Steeh on Wednesday allowed the worker to pursue claims against the stock plan’s trustees, Capital Trustees LLC and its founder, and two SAC Ventures Inc. executives who sold their shares in the company to the plan. The worker adequately alleged that the trustees breached their duties and allowed the plan to engage in transactions prohibited by the Employee Retirement Income Security Act, and that the selling shareholders could be liable under ...