Court Subtracts $4.2 Million From Award to Employee Stock Plan

The founder of a company that supplies equipment to soft drink manufacturers is liable to his employee’s stock plan for breach of fiduciary duty, but had the $6.5 million award reduced by the Fourth Circuit Monday to $1.9 million.

Adam Vinoskey founded Sentry Equipment Erectors Inc. in 1980 and created an employee stock ownership plan in 1993, the court said. Vinoskey and his trust owned 52% of the company, the ESOP owned 42%, and Vinoskey was one of the plan’s trustees.

In 2010, Vinoskey sold the rest of his Sentry shares to the plan, the court said. Evolve Bank and ...