The US Department of Labor has taken the position that certain indemnification clauses are void against public policy under Section 410 of ERISA. This policy has been adopted by private plaintiff classes; as evident from a recent settlement, a policy that voids indemnity provisions can limit defense budgets, make settlements more likely and potentially create dangerous precedent for ESOPs.
Eliot (Eli) T. Burriss is a partner in the Firm’s Litigation Practice Group. For nearly 15 years, Eli has litigated complex commercial disputes throughout the United States, serving as counsel to global clients in all aspects of litigation. In recent years, he has had a particular emphasis on representing health care and life sciences companies, as well as a variety of organizations in antitrust, ERISA and other significant matters. Read Eliot T. Burriss' full bio.
Through a series of recent settlements, the US Department of Labor has outlined the process steps fiduciaries should follow in connection with a transaction involving a purchase from, or sale to, an employee stock ownership plan.