Reliance Trust Can't Kick Employee Stock Suit To Arbitration

Law360 (November 14, 2019, 5:59 PM EST) -- Reliance Trust Co. should face a proposed class action accusing the company of allowing RNVB Holdings Inc. workers to grossly overpay for their employer's stock in federal court, not in arbitration, a Texas federal magistrate judge recommended Wednesday.

U.S. Magistrate Judge Caroline Craven said that the former workers of the storage and moving company made the case that Reliance added an arbitration clause to their 2012 employee stock ownership plan without telling them, only after they filed the suit in federal court alleging Reliance violated the Employee Retirement Income Securities Act by making workers pay too much — $85 million —...

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