TPI Stock Plan Deal Diverted Margaritaville Profits, Suit Claims

Employees of hotel and restaurant operator TPI Hospitality were forced to sell their company stock at a steep discount in a transaction that locked them out of expected profits tied to a Margaritaville Resort development, a new lawsuit alleges.

The proposed class action, filed Tuesday in the US District Court for the District of Minnesota, challenges a 2020 transaction in which TPI’s employee stock ownership plan sold its 100% stake in the company to a “long-time friend and co-investor” of the company’s chief executive officer for $500,000. This purchase price was a “small fraction” of the $10 million the plan ...