The June 2, 2008 Employee Ownership Update is online and discusses the following:

• District Court Says LaRue Does Not Apply in ESOP Case
• Cost Accounting Standards Board Finalizes ESOP Reimbursement Rules
• New York Times Article on U.S. Sugar ESOP Creates Controversy
• Ownership Thinking Conference Set for Denver September 17-18
  

In this case, the court had previously denied a claim by the plaintiffs concerning the alleged failure of the fiduciary of an ESOP at Central Alabama Home Health Services to provide for a proper valuation concerning the ESOP's purchase of shares. Now the plaintiffs sought reconsideration in light of LaRue. The court found, however, that even if the plaintiffs' allegations were valid, the actions of the fiduciary would affect the entire plan, not just individual participants. LaRue was premised on the difficulty a plaintiff might have in getting damages when the relief would apply only to that individual and a plan-wide remedy would thus be impractical or inequitable. Here, a plan-wide remedy was already available. Moreover, the court cited the concurring opinion of Chief Justice Roberts expressing concern that LaRue not be read to allow cases to proceed where existing administrative remedies had not been exhausted, as the court found they had not been in this case.

The Update also discusses Accounting for the Costs of ESOPs Sponsored by Government Contractors and the U.S. Sugar ESOP Issues.