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Vested participants or beneficiaries in The North Highland Co. Employee Stock Ownership Plan (formerly known as The North Highland Co. Employee Stock Ownership and 401(k) Plan) between Oct. 1, 2016, and May 30, 2025, may be eligible to claim a share of a class action settlement.
North Highland ESOP Holdings and related defendants agreed to pay $2,375,000 to settle a class action lawsuit alleging breaches of fiduciary duty and other violations under the Employee Retirement Income Security Act. The lawsuit claimed the company did not properly administer the plan and alleged it improperly diluted plan stock during and after a 2016 recapitalization.
Who qualifies for the class action payout?
Class members include all vested participants in beneficiaries in The North Highland Co. ESOP from Oct. 1, 2016, to May 30, 2025. Thus includes both current and former employees.
How much is the settlement payment?
Pro rata cash payment: Eligible class member 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. The settlement administrator identified approximately 3,542 class members based on plan records.
How to claim a class action payment
Eligible class members do not need to file a claim to receive their share of the settlement. The settlement administrator already has the necessary information from plan records to determine eligibility and calculate awards and 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.
- Former participants who elect a rollover can receive their payment as a direct deposit into an individual retirement account or qualified employer plan by submitting the online rollover form.
Required information
- To elect a rollover to an IRA or qualified employer plan, eligible class members should contact the settlement administrator or use the online rollover form.
- Class members who use the online rollover form must provide the login ID and PIN from the settlement notice they received.
Settlement administrator's mailing address: Howell v. Argent Trust Co., c/o Settlement Administrator, P.O. Box 26170, Santa Ana, CA 92799
Settlement administrator's email address: info@NHESOPSettlement.com
Settlement administrator's phone number: 833-421-7346
The deadline to elect a rollover is Nov. 5, 2026.
Payout options
- Direct rollover to an IRA or qualified employer plan (no automatic tax withholding)
- Check mailed to the address on file (subject to automatic tax withholding and reporting)
$2.38 million settlement fund breadown
The $2,375,000 settlement fund includes:
- Settlement administration costs: Amount not specified
- Attorneys' fees: Up to $791,666
- Attorneys' expenses: Up to $25,000
- Service awards to class representatives: Amount not specified
- Payments to eligible class members: Remainder of the settlement fund
Important dates
- Rollover form deadline: Nov. 5, 2026
- Fairness hearing: Nov. 5, 2026
When is the North Highland ESOP settlement payout date?
The settlement administrator will issue payments to eligible class members after the court resolves any appeals and grants final approval of the settlement.
Why is there a class action settlement?
The lawsuit alleged North Highland ESOP Holdings and related defendants breached their fiduciary duties under the Employee Retirement Income Security Act in connection with transactions involving the ESOP.
The defendants denied wrongdoing but agreed to settle to avoid further litigation costs and uncertainty.
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