BLOOMBERG BNA WEBINAR EVENT: Is There a Problem with ESOPs? Recent Litigation and Enforcement Efforts
Wednesday, October 9, 2013
1:00 PM - 2:30 PM ET
There are estimated to be 12,000 ESOPs and other ERISA plans invested primarily in employer stock and valued collectively at in excess of $850 billion. Despite the fact that many ESOPs have provided a huge retirement benefit to the plans’ participants, ESOPs remain the target of increasing enforcement efforts by the U.S. Department of Labor and the private bar. Is there a problem with ESOPs or is something else serving as a catalyst for these actions?
The faculty for this program will discuss whether ESOPs are well-kept secrets subject to unfair, unknowledgeable, and over-burdensome scrutiny or whether they are abusive and risky tools wielded by inherently and intractably conflicted financiers or misguided owners. They will address a variety of current ESOP issues such as the recent increase in the number of ESOP-related litigations and the underlying factors leading to litigation, including significant decreases in ESOP company stock prices due to the economic downturn, apparent closer scrutiny of ESOPs by the DOL, and successful outcomes in a number of class actions and DOL enforcement cases involving ESOPs. Also discussed will be the developing trends in ESOP litigation, including “hot button” legal, valuation, and fiduciary issues that can come up during ESOP audits, DOL investigations, and litigation.
- Understand employment-related agreements with sellers, including executive and deferred compensation.
- Learn to evaluate the reasonableness of management projections.
- Discover ESOP seller financing valuation: face versus FMV.
- Find out about multi-investor and multi-stage redemption transactions.
- Understand fairness and solvency.
- Understand the effect of subsequent sales.
- Understand what it means to be a comparable company.
- Discover if there are “non-traditional” ESOP valuation methods worth considering.
- Understand “appointing” fiduciary liability.
- Learn about the indemnification of ESOP fiduciaries.
Who would most benefit from attending this program?
Legal practitioners involved in ESOP structuring, administration, and litigation, business appraisers, investment bankers, ESOP plan sponsors, and ESOP fiduciaries will benefit from attending this program, which will offer analysis of cutting edge litigation issues effecting ESOPs and ERISA plans holding employer stock.
Program Level: Advanced.