Russelectric ESOP Shares Sold at Less Than Fair Market Value ERISA Complaint

March 25, 2022

Towards the end of his life, the founder of Russelectric, Inc., Raymond Russell, gave 30% of his company stock to its employees as a retirement benefit, through the Russelectric Inc. Employee Stock Ownership Plan (ESOP). However, the complaint alleges, after Russell died, “the company, at the direction and for the benefit of the founder’s heirs, reclaimed the ESOP’s shares and terminated the Plan.” This class action brings suit under the Employee Retirement Income Security Act (ERISA) against three of the Russell heirs and others, claiming that they underpaid for the stock.