DOL Alleges Overvaluation of ESOP Stock

The Department of Labor filed a lawsuit against Sierra Aluminum Co and GreatBanc Trust based on an investigation by the Employee Benefits Security Administration (EBSA). The DOL alleges that GreatBanc failed to sufficiently investigate the projections the company provided for the appraiser to use in calculating the fair market value of company stock. The DOL named Sierra Aluminum as a defendant, saying that the company's agreement to indemnify GreatBanc violated ERISA.