Aerotech Ruling Is First Early Worker Win Over Stock Plan Cash

Motions systems manufacturer Aerotech Inc. must face key aspects of a proposed class action saying it wrongly keeps too much of its employee stock ownership plan assets in cash-like investments, a federal judge said in a first-of-its-kind ruling.

It’s the first significant employee victory in the recent series of cases targeting ESOPs with substantial cash holdings. The “vast disparity” of cash in the plan compared with peers, coupled with allegations that Aerotech “unquestioningly” followed a cash-heavy strategy over many years, suggests the company failed to fulfill its fiduciary duties under the Employee Retirement Income Security Act, Judge W. Scott ...