Yesterday the Sherwin-Williams Co. announced that it had reached a settlement with the Department of Labor (DOL) that will resolve investigations into transactions related to the company’s employee stock ownership plan (ESOP).
In its investigation, the government asserted breaches of fiduciary duty obligations and sought compensatory remedies from Sherwin-Williams, including monetary damages to the ESOP for alleged losses related to third-party valuation of Sherwin-Williams’ convertible serial preferred stock.
After negotiating with the government for nine months, the Cleveland-based paint maker yesterday agreed to make a one-time payment of $80 million to the plan. “The settlement will result in payments totaling $80 million to current and former participants in the plan as well as to their beneficiaries,” the DOL said in a statement issued to Reuters.
The agreement resolves all DOL claims regarding Sherwin-Williams’ ESOP transactions. Nonetheless, Sherwin-Williams says it believe the government’s claims are meritless and that it “strongly disagrees with the allegation that ESOP plan participants sustained losses of any kind as a result of these transactions.”
Read Crain’s for more about the settlement.
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