Halldorson v. Wilmington Trust Retirement and Institutional Services Company

Filing 294

MEMORANDUM OPINION. Signed by District Judge Leonie M. Brinkema on 3/13/17. Order to follow(gwalk, )

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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division TIM P. BRUNDLE, on behalf of the Constellis Employee Stock Ownership Plan and a class of other individuals similarly situated. l:15-cv-1494 (LMB/IDD) Plaintiff V. WILMINGTON TRUST N.A., as successor to Wilmington Trust Retirement and Institutional Services Company Defendant. MEMORANDUM OPINION Plaintiff Tim P. Brundle ("plaintiff" or "Brundle") is a former employee of Constellis Group, Inc. ("Constellis"), and a former participant in an EmployeeStock OwnershipPlan ("ESOP") sponsored by Constellis. Defendant Wibnington TrustN.A. ("Wihnington") was the trustee for the ESOP in connection with Constellis' creation of the ESOP. Creating the ESOP involvedpurchasing 100% of Constellis' voting stock in December 2013 (the "2013 Purchase"). Lessthan a year after the ESOPwas created, all its stockwas sold (the"2014 Sale"). Plaintiff alleges that the 2013 Purchase involved transactions and payments prohibited by the Employee RetirementIncome Security Act of 1974 ("ERISA"), 29 U.S.C. ยง 1106, resulting in the ESOP paying an inflated price for the Constellis stock. Specifically, plaintiff alleges that the $4,235 per share paid in 2013 was not the fairmarket value of suchstock, resulting in the ESOP overpaying for the stock by $103,862,000, PTX^ 512, which plaintiff seeks torecover for the ESOP. ^Throughout this Memorandum Opinion, plaintiffstrial exhibits are referred to as "PTX," and defendant's are referred to as "DTX." PTX 512 is the summary chart of plaintiffs damages

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