The US Labor Department can proceed with a lawsuit alleging an Alabama-based engineering and scientific consulting firm improperly diluted the value of worker-owned shares.
The government adequately alleged that three Gleason Research Associates Inc. executives owed and breached their fiduciary obligations to the plan and its participants, US District Court for the Northern District of Alabama Judge Madeline Hughes Haikala said March 27.
The federal government alleged Gleason’s employee stock ownership plan purchased more than 440,000 newly-issued shares from the firm at $8.39 in 2017, which allegedly diluted the equity interests of plan participants. The Employee Retirement Income Security ...
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