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A federal court in Georgia has given initial approval to a $2 million settlement in a class action accusing United Bank Corp. of unlawfully removing former employees from its Employee Stock Ownership Plan (ESOP) and denying them proceeds from a $23.3 million dividend.

U.S. District Judge Marc T. Treadwell on Friday certified the class and granted preliminary settlement approval in the Employee Retirement Income Security Act (ERISA) lawsuit filed by former United Bank workers Ruth Davis and Jim Ogletree.

Settlement Details

According to the order, roughly 74 class members, all former ESOP participants, will each receive over $27,200 from the settlement — about 43% of what they could have earned at trial. Judge Treadwell will consider attorney fees during a final approval hearing scheduled for March 26.

Davis, a 25-year bank veteran, and Ogletree, who served over a decade, filed their lawsuit in September 2024. They alleged that their years of service and ESOP participation allowed them to accumulate substantial stock in the bank, which they expected to hold until retirement.

Allegations Against United Bank

In September 2021, United Bank allegedly modified the ESOP to exclude former employees and involuntarily converted their shares at a reduced price, far below fair market value, the complaint stated. The following year, the bank declared a $23.3 million dividend, which would have netted former employees $72.25 per share, according to Davis and Ogletree.

Path to Settlement

The lawsuit was resolved through negotiation, with the parties announcing an agreement in June 2025. Davis and Ogletree subsequently requested court approval for the deal in late September, leading to Friday’s preliminary ruling.

The case underscores the ongoing scrutiny of corporate ESOP management and the protections ERISA provides to former employees entitled to plan benefits.

Legal Representation

Details on counsel were not included in Friday’s order.