CHARLESTON, S.C. (WCBD) — A federal class action lawsuit may go to court in Charleston County.
The lawsuit filed in February 2016 claims several counts of breach of fiduciary duty against an employee stock plan for Piggly Wiggly Carolina company Inc. and Greenbax Enterprises Inc. The defendants also include the plan’s trustees.
The complaint alleges that more than a thousand employees included in the stock plan will not get money expected due to the company’s wrong doings over almost a decade.
The lawsuit states almost Piggly Wiggly and Greenbax Enterprises offered an Employee Stock Option Plan, or “ESOP”. In short, a privately owned company sells the company to the employees. In this case, the employees expected to gain money at retirement.
The ESOP trustees and directors for the company are held to a fiduciary standard, in which they are to manage the money in the best interest of the employees. However, the suit alleges that the trustees and directors misused the money and did not uphold that standard.
The suit claims those handling the money did not have the employees best interest in mind.
The lawsuit says, and gives examples of, “company-wide corruption.”
Former Piggly Wiggly employees who were part of the ESOP received a letter last week that shows their ESOP account balance as $0.00.
David Schools, President of Greenbax enterprises, said in the letter the money was used, among other things, to go toward worker compensation claims.
Schools denied comment on the open litigation.