Milling Co. Can't Slip ERISA Suit Over $244M Stock Sale
By Kellie Mejdrich (December 14, 2021, 5:34 PM EST) -- Milling company Kruse-Western Inc.'s board of directors must face a proposed class action for allegedly overcharging its employees in a $244 million stock deal before an animal feed contamination problem drove the company's share value down, a California federal judge has ruled.
U.S. District Judge Dale Drozd ruled on Monday that the lawsuit from former Kruse-Western worker Armando Zavala can proceed against various defendants including Kruse-Western's board of directors, the plan's administration committee, employee stock ownership plan trustee GreatBanc Trust and Kevin Kruse, the president of Western Milling, which is one of Kruse-Western's companies.
Judge Drozd found that Zavala had sufficiently...
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