Ritchie Trucking ESOP $1.89 Million Class Action Settlement

Ritchie Trucking ESOP $1.89 Million Class Action Settlement

Participants or beneficiaries of the Ritchie Trucking Service Holdings Inc. employee stock ownership plan at any time between Dec. 31, 2018, and Dec. 31, 2024, may qualify to receive a share of a $1.89 million class action settlement .

Ritchie Trucking Service Holdings Inc. agreed to pay $485,000 in cash and reduce ESOP-related debt by $1.4 million to resolve a class action lawsuit alleging it and other defendants violated the Employee Retirement Income Security Act by causing the ESOP to purchase company stock at more than fair market value in 2018 and failing to take corrective action afterward.

Who are the class members?

The class includes individuals who participated in the Ritchie Trucking Service Holdings Inc. employee stock ownership plan, also known as the People Business employee stock ownership plan, at any time from Dec. 31, 2018, through Dec. 31, 2024. The class also includes beneficiaries of these participants provided the participant did not terminate employment before vesting.

The settlement administrator identified most class members using company records.

How much is the Ritchie Trucking Service Holdings payout?

The settlement values the total recovery at $1,885,000, which includes a $485,000 cash payment and a $1.4 million reduction in ESOP debt. The debt reduction will result in the release of 115,000 shares from the ESOP’s suspense account, which should increase the value of Ritchie stock the ESOP holds as of Dec. 31, 2024.

The settlement administrator will distribute both the cash and stock portions of the settlement among class members according to a court-approved formula based on the number of shares in each class member’s ESOP account or, for beneficiaries, the number of shares in the class member's ESOP account before they took a distribution (unless those shares were reallocated from another class member’s forfeited or liquidated account).

No claim form needed to receive payment

Most class members do not need to file a claim to receive their share of the settlement. The settlement administrator will allocate proceeds directly to each class member’s ESOP account. If a class member is eligible for an immediate distribution, they will receive an election form to request the funds after the settlement receives final approval. Otherwise, the settlement amount will remain in their ESOP account.

Class members whose address has changed can download, print and complete the address change form and mail it to the settlement administrator.

Those who believe their account data is incorrect or that they should be included in the settlement but did not receive a personalized notice may submit a challenge by mail. This includes an explanation as to why the defendants’ data is incorrect or why they are a member of the class and entitled to a payment. Along with the request, class members should submit any documentation necessary to support their request. The deadline for challenges is Dec. 1, 2025.

Settlement administrator’s mailing address: Ritchie ESOP Settlement, P.O. Box 2002, Chanhassen MN 55317-2002

$1.89 million settlement fund breakdown

The settlement fund of $1.89 million includes $485,000 in a cash settlement fund and $1,400,000 in debt reduction. The $485,000 also covers:

• Settlement administration costs: To be determined
• Attorneys’ fees : Up to $161,666.67
• Attorneys’ expenses : Up to $60,000
• Service award to class representative : $5,000
• Payments to eligible class members : The remainder of the fund

Important dates

• Data correction challenge deadline : Dec. 1, 2025
• Final approval hearing : Dec. 19, 2025