ACCT Holdings $8.75 Million ESOP Class Action Settlement

Vested participants or beneficiaries in the ACCT Holdings Inc. Employee Stock Ownership Plan between Dec. 22, 2021, and Dec. 31, 2025, may be eligible to receive a share of a class action settlement.

ACCT Holdings agreed to pay $8,750,000 to settle a class action lawsuit alleging breaches of fiduciary duty and prohibited transactions under the Employee Retirement Income Security Act related to the ESOP’s purchase of company stock.

Who qualifies for the settlement?

Class members are all vested participants and beneficiaries in the ACCT Holdings ESOP from Dec. 22, 2021, to Dec. 31, 2025. The settlement divides class members based on their account status:

• Current participants: Those who still have a vested positive balance in their plan account as of the distribution date.
• Former participants: Those who have withdrawn their plan balance before the distribution date

How much is the settlement payout?

The total settlement consists of three primary forms of relief:

• A $3 million settlement fund for cash payments that the settlement administrator will distribute to class members after deductions for court-approved expenses. Each qualified class member will receive a pro rata share of the net proceeds based on their vested shares.
• A $5.75 million reduction in the balance of loans certain defendants made to ACCT Holdings, which increases the value of ACCT stock class members with active plan accounts held.
• Former participants who already cashed out their shares will receive an additional cash payment based on their vested shares to reflect the increase in stock value from the $5.75 million loan reduction. If a former participant’s calculated payment is less than $10, they will not receive a distribution; the settlement administrator will reallocate their share among other class members.

No action needed to receive compensation

Eligible class members do not need to file a claim to receive their share of the settlement. The settlement administrator will automatically distribute funds as follows:

• Current ESOP participants with an active plan account will receive their payment as a direct deposit into their plan account.
• Former participants who withdrew their plan balance will receive a check by mail unless they elect to roll their payment over to a qualified retirement account, such as an IRA.

Required information

To elect a rollover, eligible class members must download, print and complete the rollover election form and mail it to the settlement administrator.

Settlement administrator's address: Prudent Fiduciary Services LLC Settlement, c/o RG/2 Claims Administration LLC, P.O. Box 59479, Philadelphia, PA 19102-9479

The deadline to elect a rollover is June 1, 2027.

Payout options

• Direct deposit into an active plan account (for current participants)
• Check by mail (for former participants)
• Rollover to a qualified retirement account such as an IRA (for former participants who elect this option)

$8.75 million settlement fund breakdown

The $8,750,000 settlement fund includes:

• $3 million in cash payments to the settlement fund
• $5.75 million reduction in ACCT’s loan balance

Deductions from the $3 million cash portion include:

• Settlement administrator fee: Amount not specified
• Attorney's fees: Up to $1,312,500
• Attorneys’ expenses: Amount not specified
• Service awards to class representatives: $2,500 each (up to $5,000)
• Payments to eligible class members: Remainder of the fun

Important dates

• Fairness hearing: Nov. 19, 2026
• Deadline to elect rollover: June 1, 2027

When is the ACCT Holdings ESOP settlement payout date?

The settlement administrator will issue payments after the court resolves any appeals and grants final approval of the settlement. The last cash payment is due no later than 270 days after final approval.

Why is there a class action settlement?

This lawsuit claimed ACCT Holdings ESOP’s trustee and other defendants breached fiduciary duties and engaged in prohibited transactions under ERISA by approving the plan’s purchase of ACCT Holdings stock at a price that allegedly exceeded fair market value. the plaintiffs also claimed certain shareholders and officers had knowledge of and benefitted from these alleged violations and failed to properly monitor the trustee.

The defendants denied all allegations but agreed to settle to avoid the uncertainty and expense of further litigation.

Sources

1. Settlement notice
2. Settlement agreement
3. Rollover election form