Wawa is paying $21.6 million to settle a 2018 class-action lawsuit involving the company’s employee stock option plan, according to a court filing Thursday.
The convenience store chain, which has a cult following on the East Coast, allegedly forced former employees out of the ESOP in 2014 and 2015. In doing so, the company allegedly breached its fiduciary duty, in part because former employees received less than fair market value for their stock holdings, according to the lawsuit.
The case is separate from a similar lawsuit filed in 2016 against Wawa, which ended in a $25 million settlement. The newer case involves a different class of plaintiffs who separated from the firm between 2011 and 2015, according to court records.
The new $21.6 million settlement will compensate about 10,000 former employees by about $500 per share of Wawa stock they owned, the proposed order read. The company’s plan purchased nearly 44,000 shares from former employees included in the class.
The settlement, which requires court approval, resolves claims that the company improperly limited the rights of former employees to stay invested in the stock plan until they reached age 68 and that it undervalued the stock it purchased from those accounts when it forced people out of the plan.
The plaintiffs reached a settlement in principle with Wawa as early as December, though the specific terms were not disclosed publicly until Thursday.
Wawa did not immediately respond to a request for comment about the settlement.
The Illinois order refers to Brandon Ellington’s investment program as a “Ponzi-like scheme.”
But the Amazon executive chair seems to want it both ways, arguing that taxing the ultra-wealthy won't help struggling Americans.
Northern Trust planning leader sees the bill extending qualified charitable distributions to employer plans as a potential positive step — but advisors shouldn't overlook bigger holes in the strategy.
Markets will always create reasons for investors to worry. The advisor’s role is not to predict uncertainty, but to help clients understand why volatility should not derail a well-built financial plan.
Plus, Asset-Map partners with Contio to elevate the advisor meeting experience, and MyVest claims an innovation in portfolio management with separately managed models.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
