In coordination with Chubb, a leading provider of commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance, Groom is continuing its “Chubb’s ESOP Series,” a collection of whitepapers examining key legal, fiduciary, and litigation issues impacting employee stock ownership plans (“ESOPs”).
In the third installment of the series, Groom principals and litigation practice chairs Lars Golumbic and Andrew Salek-Raham, together with associate Larry Brett, authored “New Litigation Risks for Mature Employee Stock Ownership Plans (‘ESOPs’).” The whitepaper examines emerging litigation risks facing mature ESOPs, focusing on challenges to releveraging transactions and the investment of non-company stock assets held in Other Investment Accounts (“OIAs”). It also highlights practical considerations for sponsors and fiduciaries navigating these evolving risks.
“As mature ESOPs have grown in both number and asset size, plaintiffs’ firms are increasingly eyeing them as a potential new target,” the authors write.
To read the whitepaper, click here.
