The workers said they discovered in 2019 that the stock was worth much less than what they were told during the 2012 transaction. The lawsuit accuses CQ Holding Co.’s board, the plan’s administrative committee, and several individuals of breaching their fiduciary duties under ERISA by not acting in the best interests of the plan participants.
Arbitration Dispute and Class Action Scope
Casino Queen attempted to move the lawsuit into arbitration, citing a 2018 amendment to the ESOP that required binding individual arbitration for claims related to the plan. The amendment was applied retroactively to 2017. However, Judge Dugan ruled in January 2021 that the arbitration agreement unfairly favored the company, finding it invalid.
The proposed class of plaintiffs in the Casino Queen worker settlement consists of around 620 participants in the employee stock plan, all of whom were affected by the alleged stock overvaluation.
Casino Queen Worker settlement : Settlement and Next Steps
The Casino Queen worker settlement is expected to resolve both the class action and the pending appeal in the Seventh Circuit. Once finalized, the settlement will be submitted for court approval, with a motion for preliminary approval set to be filed by Nov. 12.
Legal Teams Involved
The workers are represented by attorneys Michelle C. Yau and Ryan A. Wheeler of Cohen Milstein Sellers & Toll PLLC, as well as Shaun Martin of Stris & Maher LLP. Casino Queen and the other defendants are represented by a large team of attorneys from firms including Groom Law Group, Dentons US LLP, Heyl Royster, and others.
