Alerus Dodges Breach of Fiduciary Duty Claims by Plan Members

Participants in an employee stock ownership plan failed to allege sufficient facts that trustee Alerus Financial NA, breached its duty when it approved the sale of their employer under fair market value, a federal court said.

The plaintiffs’ complaint didn’t identify what duty Alerus allegedly owed to the plan or what fiduciary duty was breached when its shares were redeemed, Judge Daniel J. Calabretta said Tuesday for the US District Court for the Eastern District of California. But the plaintiffs may amend their complaint, he said.

The plaintiffs worked for OC Communications and participated in the plan that purchased OCC ...