This lawsuit is a class action on behalf of certain participants and beneficiaries of the World Travel, Inc. ESOP, against Prudent Fiduciary Services, LLC (“PFS”), Miguel Paredes (“Paredes” and together with PFS, the “Trustee”), and James A. Wells (“Wells” and, together with PFS and Paredes, the “Defendants”) in the U.S. District Court for the Eastern District of Pennsylvania (the “Lawsuit”).
The Lawsuit claims that Defendants violated a federal statute, the Employee Retirement Income Security Act of 1974 (“ERISA”), in connection with the Plan’s acquisition of World Travel stock in 2017 for approximately $200 million (the “ESOP Transaction”). Specifically, the Lawsuit alleges that the Trustee violated its duties under ERISA § 404, 29 U.S.C. §1104, and ERISA § 406, 29 U.S.C. § 1106, when it, among things, allegedly approved a purchase price for World Travel stock that exceeded fair market value, and Wells participated in a prohibited transaction in violation of ERISA § 406, 29 U.S.C. § 1106, by selling his World Travel stock to the Plan.
The Trustee and Wells deny all of the allegations in the Lawsuit, deny any wrongdoing regarding the ESOP Transaction, and have vigorously defended the Lawsuit.