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.
