Lysengen v. Argent Trust Company

United States District Court for the Central Division of Illinois Peoria Division
The Morton Buildings, Inc. ESOP Litigation Lysengen v. Argent Trust Company, Case No. 1:20-cv-01177 (C.D. Ill.)

This lawsuit is brought on behalf of certain participants and beneficiaries of the Morton Buildings, Inc. Leveraged ESOP against Argent Trust Company ("Argent" or "Defendant") in the U.S. District Court for the Central District of Illinois (the "Action").

Plaintiff's Complaint in the Action claims that Defendant violated a federal statute, the Employee Retirement Income Security Act of 1974 ("ERISA"), in connection with the ESOP's acquisition of Morton Buildings stock in 2017 for approximately $147 million (the "ESOP Transaction"). Specifically, the Complaint alleges that Argent violated its duties under ERISA § 404, 29 U.S.C. § 1104, and ERISA § 406, 29 U.S.C. § 1106, when it, among things, caused the ESOP to borrow money from a party in interest; caused the Plan to acquire Morton Buildings shares from the selling shareholders, which included Edward C. Miller, the Getz Family Limited Partnership, the Estate of Henry A. Getz ("Getz Estate"), and the Estate of Virginia Miller (together, the "Selling Shareholders"); acted for the benefit of Morton Buildings and its Selling Shareholders by approving a purchase price for Morton Buildings stock that exceeded its fair market value; and breached its fiduciary duties that it owed to the ESOP.

Argent denies all of the allegations in the Action, denies any wrongdoing regarding the ESOP Transaction, and has vigorously defended the Action. The Court has not made any determination as to the merits of this case, liability, or the validity of any allegation in the Complaint whatsoever.

Upcoming Important Dates

Objection Deadline

8/4/2025

Rollover Deadline

8/4/2025

Final Approval Hearing

8/25/2025