The U.S. Department of Labor conducts audits and initiates lawsuits when it finds evidence of abuse or unfairness in ESOP transactions or valuations. In addition, ESOP participants may initiate lawsuits against ESOP trustees and financial advisors for actions they consider to be harmful to ESOP participants.
Certain ESOP company transactions and valuations involve complex capital structures and voting rights associated with financial instruments such as warrants and synthetic equity securities. These complicated ESOP structures require a deep understanding of valuation theory as well as the allocation of value to various classes of debt and equity securities. We have the experience and expertise necessary to defend our analyses and narrative reports in these types of engagements.
We serve corporations, trustees, regulatory agencies, and individuals in lawsuits involving allegations of ESOP mismanagement, adequate consideration analysis, repurchase obligations, improper valuations, and breach of fiduciary duty.