Top executives of Technical Associates of Georgia must face a lawsuit claiming they secretly took a 40% ownership stake in the engineering and technical services company away from its employee stock ownership plan, a federal judge in the Middle District of Georgia ruled.
Judge Leslie A. Gardner declined to dismiss the proposed class action claiming violations of the Employee Retirement Income Security Act’s prohibited transaction and fiduciary rules. Stock plan participant Nelson Gamache adequately alleged that the plan’s fiduciaries signed off on a “refinancing” transaction that allowed the company’s top executives to profit at the plan’s expense, Gardner said.
Gamache’s ...
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