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On May 1, the U.S. Cost Accounting Standards Board issued final rules for reimbursable costs for government contractors that have ESOPs. Since the 1980s, there has been considerable uncertainty about how the costs of funding an ESOP would be treated.

The Cost Accounting Standards Board, part of the Office of Federal Procurement Policy at the Office of Management and Budget, has issued proposed regulations on how companies with ESOPs will be reimbursed in government contracts. The issue has been controversial for over two decades.

The Cost Accounting Standards Board has proposed new regulations on reimbursement for companies sponsoring ESOPs with federal contracts. The issue of what constitutes a reimbursable cost has been tossed back and forth between government regulators for about two decades.

A U.S. district court judge in the Middle District of Florida rejected a defendant's motion to dismiss a claim against trustees of the KSOP (combined 401(k)/ESOP) at Community National Bank Corporation (CNBC).

In DeNadai v Preferred Capital Markets Inc. (D. Mass, No. 01-40073-WGY, 11/13/01), a U.S. District Curt ruled that unvested options are contingent property of an estate that are subject to bankruptcy claims.

In Armstrong v Amsted Industries, Inc., No. 01 C 2963, MDL 1417 (U.S. Dist. Ct. ND Ill, 7/29/04), ESOP fiduciaries and company officers won an important victory concerning fiduciary obligations, changes in repurchase rules, and business acquisition decisions.

In Pennsylvania Federation, Brotherhood of Maintenance Way Employees v. Norfolk Southern Corp., No. 02-9049 (E.D.

In a 158-page decision (Perez v. First Bankers Tr. Servs., Inc., No. 3:12-cv-04450 (D.N.J.

In Neil v. Zell, GreatBanc Trust, and EGI-TRB, No. 08 C 6833 (N.D. Ill., Eastern Division, Nov.

A district court has added another possible line of defense for fiduciaries in stock-drop cases by agreeing with the defendants that, unless fiduciary decisions actually caused investment losses in employer stock, fiduciaries could not be held accountable for them. In Dann v.