Alabama Telecom Co. Settles ESOP Suit For $2.1M

By Patrick Hoff (May 18, 2022, 3:47 PM EDT) -- An Alabama-based telecommunications company, two of its founders and the trustee of its employee stock ownership plan have reached a $2.1 million deal to end a proposed class action alleging the plan purchased shares of the company at an inflated price.

In a motion for class certification and preliminary settlement approval, the employees of McKinney Communications Corp. told an Alabama federal court Tuesday that each of the approximately 309 proposed class members would receive nearly $6,800 before fees and expenses from the settlement.

The settlement would also reduce debt that the ESOP incurred in buying McKinney shares by $2 million, the...

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