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Raydon Employee Stock Ownership Plan ERISA Settlement

Settlement Structure: Claims Made

Active: Open

Case Summary:

This settlement resolves a class action against Raydon Corporation, the ESOP Committee of the Raydon Corporation Employee Stock Ownership Plan, Lubbock National Bank, and other parties over a 2015 transaction in which the ESOP bought 100% of the shares of Raydon, including shares purchased from the former owners, their relatives, and their family trusts. The complaint alleged that these parties breached their fiduciary duties and otherwise violated the Employee Retirement Income Security Act (ERISA) by paying more than the fair market value for the shares.

Docket Number:

6:18-cv-2090-WWB-GJK

Company: Raydon Corporation

Filing Deadline: January 1, 2100

Class Period: September 30, 2015

Objection Deadline: December 31, 2021

Final Approval Hearing: February 8, 2022

Proof of Purchase:

You do not need to provide proof if you received a personalized Notice and accept the number of shares shown for you. If you did not receive a personalized Notice about the settlement but believe you may be a class member, or if you received a personalized Notice but do not agree with the number of vested shares shown for you, you must submit documents supporting your claim to the Settlement Administrator by December 30, 2021.

Eligibility:

You may be eligible if you were a participant or beneficiary in the Raydon Corporation Employee Stock Ownership Plan, at any time from September 30, 2015 on, who were vested under the plan.

Typical Settlement Amount:

The net settlement amount will be distributed to class members according to a plan of allocation, based on the number of each class member’s vested shares compared to the total number of vested shares in the plan. Amounts will be allocated to your ESOP account and then transferred to your account in the Raydon Corporation 401(k) Plan for investment and distribution.

Total Settlement Amount: $2,400,000

Class Representative Proposed Incentive Fee:

Up to $10,000

Law Firms:
Block & Leviton LLP
Burr & Smith, LLP
Feinberg, Jackson, Worthman & Wasow, LLP

Case Name: Woznicki v. Raydon Corp. et al.

Settlement Website: Raydon ESOP Settlement Website

Claims Administrator:
CPT Group, Inc.

Claims Administrator Contact Information:

Settlement Administrator for
Raydon ESOP Settlement c/o CPT Group, Inc.
50 Corporate Park
Irvine, CA 92606
888-464-0271

Tags: Breach of Fiduciary Duty, ERISA Violations, Retirement Plans