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Release Date: June 26, 2006
Release Number: 06-1036-ATL
Contact Name: David James/Gloria Della
Phone Number: 202.693.4676/202.693.8664
Atlanta, Georgia - The U.S. District Court for
the District of South Carolina has consolidated a lawsuit brought by the
U.S. Department of Labor with a private suit against fiduciaries of the
employee stock ownership plan (ESOP) of Cameron & Barkley Company,
now part of Hagemeyer North America Inc., located in Charleston, South
Carolina. The Labor Department’s suit alleged that participants
suffered more than $1 million in losses when the ESOP purchased company
stock at an inflated price.
“These workers were counting on their employee
stock ownership plan for their retirement,” said Secretary of Labor
Elaine L. Chao. “The department is taking this legal action to restore
the workers’ assets and protect their retirement dreams.”
The suit alleges that Hagemeyer North America Inc.,
GreatBanc Trust Company, and members of the plan administrative and
advisory committees violated the Employee Retirement Income Security Act
(ERISA) by mismanaging two ESOPs sponsored by the Cameron & Barkley
Company (C&B) and Cambar Software Inc. (CSI).
C&B provided maintenance, repair and operating
products in the electrical construction industry, and it created Camber
Software Inc. (CSI) as a software and consulting services company. CSI
employees were covered by the C&B ESOP, until C&B merged with
Hagemeyer in 2000. CSI was not part of the merger and its employees were
spun off to a new ESOP.
As of December 31, 1999, the C&B ESOP reported
over $147.5 million in assets and covered 2,533 participants. The
alleged violations occurred when C&B merged with Hagemeyer in 2000.
The suit seeks a court order requiring the defendants
to restore to the plan all losses with interest, return any illegal
profits received by them and undo any transactions prohibited by federal
benefits law. The suit also asks that there be an accounting of the
escrow monies and appropriate allocation of funds with interest to the
C&B and CSI ESOPs.
The suit resulted from an investigation conducted by
the Atlanta regional office of the Labor Department’s Employee
Benefits Security Administration (EBSA). In fiscal year 2005, the
department achieved monetary results of $1.7 billion in pension, 401(k),
health and other benefits for millions of American workers and their
families.
Employers and workers may contact the Atlanta office
of the EBSA at 404.562.2156 or toll-free at 1.866.444.EBSA (3272), for
help with problems relating to private-sector pension and health plans.
(Chao v. Hagemeyer North America, Inc.)
Civil Action No. 2:06-cv-01173-PMD
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