AMPAM Parks Mechanical $13.75M ESOP Class Action Settlement

Participants or beneficiaries in the AMPAM Parks Mechanical Inc. Employee Stock Ownership Plan (ESOP) with vested stock on or after Aug. 6, 2023, may be eligible to receive a payment from a $13.75 million award from a class action settlement.

AMPAM Parks Mechanical agreed to pay $13.75 million to settle a class action lawsuit alleging violations of federal law related to the administration and management of its ESOP. The plaintiff claimed the company and other defendants breached their fiduciary duties under the Employee Retirement Income Security Act (ERISA) during certain transactions involving the sale of AMPAM stock to and from the ESOP, resulting in financial harm to plan participants and beneficiaries.

Who are the class members?

Class members are all participants and beneficiaries in the AMPAM Parks Mechanical ESOP who held vested AMPAM stock on or after Aug. 6, 2023.

How much is the settlement payment?

Pro rata cash payment: Eligible class members will receive a pro rata cash payment from the net settlement fund. The payment each class member receives depends on the number of vested shares they held during the class period compared to the total shares held by all class members.

Payments are available as a check or, if elected, as a rollover to a qualified retirement account (such as a traditional or Roth IRA, 401(a), 401(k), 403(b), or governmental 457(b) plan). If a class member does not elect a rollover, their payment will be sent by check and may be subject to tax withholding.

How to claim a class action payment

Eligible class members do not need to file a claim to receive a settlement payment.

Class members who prefer to receive their payment as a rollover to a qualified retirement account to avoid tax withholding can submit a rollover form online or print and complete the PDF rollover form and mail it the settlement administrator.

Settlement administrator's mailing address: AMPAM ESOP Settlement, c/o Atticus Administration P.O. Box 64053, St. Paul, MN 55164

The rollover form deadline is Nov. 12, 2026.

Required information

• To submit a rollover form online, class members must provide the notice ID from the settlement notice they received.
• Beneficiaries or alternate payees may need to provide documentation of their authority such as proof of being a surviving spouse or a qualified domestic relations order.

Payout options

• Direct rollover to a qualified retirement account (traditional IRA, Roth IRA, 401(a), 401(k), 403(b), or 457(b) governmental plan)
• Check mailed directly to the address on file (subject to tax withholding)

$13.75 million settlement fund breakdown

The $13,750,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $4,583,333.33
• Attorneys’ expenses: Up to $600,000
• Service awards to class representatives: Up to $25,000 each ($50,000 total)
• Payments to eligible class members: Remaining settlement funds

Important dates

• Deadline to submit rollover form: Nov. 12, 2026
• Fairness hearing: Dec. 3, 2026

When is the AMPAM ESOP settlement payout date?

The settlement administrator will distribute payments to eligible class members after the court grants final approval of the settlement and any appeals are resolved.

Why is there a class action settlement?

The class action lawsuit alleged AMPAM Parks Mechanical and other defendants violated ERISA by causing the ESOP to buy AMPAM stock at an inflated price in 2019 and to sell it at a deflated price in 2023. Plaintiffs claimed these actions breached fiduciary duties and harmed ESOP participants.

AMPAM Parks Mechanical denied any wrongdoing but agreed to settle to avoid the cost and risk of ongoing litigation.

Sources

1. Rollover form
2. Class notice
3. Settlement agreement
4. Settlement website FAQ page