In her complaint, the Secretary alleged that various components of an employee stock ownership plan (hereinafter "ESOP") for the benefit of employees of a subsidiary of Hall Holding Company violated the Employee Retirement Income Security Act.
Chao v. Hall Holding Co., Inc.
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No Prudent Investigation Into FMV Was Breach of Fiduciary Duty to ESOP
Secretary Chao of the U.S. Department of Labor brought action against Hall Holding Co. and others on the grounds that they breached their fiduciary duty by purchasing Hall Holding stock for the employee stock ownership plan (ESOP) without determination of fair market value of that stock.