October 10, 2023
The U.S. Supreme Court declined on Tuesday to review a Tenth Circuit decision that an arbitration provision in a radiology company’s employee stock ownership plan documents was unenforceable, despite the company’s argument that workers’ claims they were overcharged for company stock didn’t belong in court.
In an order list, the justices rejected the July petition for writ of certiorari from radiology company Envision Management Holding Inc. and ESOP trustee Argent Trust Co. The companies argued that the Tenth Circuit’s decision would allow a single plan participant to disrupt a plan under the Employee Retirement Income Security Act without any guardrails to protect other participants.
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Michelle Yau, who is also representing Harrison, added that this “is a significant victory for hardworking Americans whose retirement plan savings are vulnerable to abuse.”
“We look forward to presenting evidence at trial that the stock sold to employees’ retirement accounts was overpriced and caused substantial losses to their retirement savings,” Yau said.
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Harrison and the proposed class are represented by Bridget C. Asay, Peter K. Stris, Rachana A. Pathak and John Stokes of Stris & Maher LLP and by Michelle C. Yau and Kai H. Richter of Cohen Milstein Sellers & Toll PLLC.
Read High Court Turns Away Push To Send ESOP Suit To Arbitration.