Waste360 is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Need to Know
Republic-Services-Rainbow-Disposal.jpg

Republic Settles ESOP Lawsuit Related to Purchase of Rainbow Disposal

Republic Services has reached a $7.9 million class settlement in a lawsuit alleging the “imprudent and disloyal sale of Rainbow Disposal Co. Inc. Employee Stock Ownership Plan (ESOP) assets.”

According to the original complaint, the Rainbow ESOP plan was first created in 1995 and held 100% of Rainbow’s stock. But, through a series of “bad-faith dealings” on the part of the company’s executive leadership, ESOP assets were redirected by the creation of new companies and other measures—causing losses for employees.

The settlement requires Republic (which purchased Rainbow in 2014) and related defendants to pay $7.5 million, with an additional $400,000 to be paid by GreatBanc Trust Co., the former ESOP trustee.

View the original article here.

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish