7th Circ. Revives Stock Suit Against Ex-Appvion Execs

By Emily Brill (July 28, 2021, 10:05 PM EDT) -- A Seventh Circuit panel revived litigation accusing the ex-leaders of the bankrupt paper company Appvion of overvaluing the business's stock to line their own pockets, saying Wednesday that the Employee Retirement Income Security Act doesn't preempt state-law misconduct claims against the former directors and officers.

The three-judge panel ruled that ERISA doesn't block all state-court lawsuits accusing executives of wrongdoing related to a benefit plan, reviving claims that Appvion's former directors and officers violated Wisconsin law by overvaluing the company's stock. The stock was wholly held by Appvion workers through an employee stock ownership plan.

Rather, the federal benefits law allows...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!