Ritchie Trucking Employee Stock Ownership Plan Litigation
Status of Settlement:
On August 26, 2026, Class Counsel approved the allocation of stock allocations to class members accounts. Under the settlement, Ritchie has to cause the Plan to release the shares into the accounts of Class Members within 15 days after Class Counsel has approved the stock allocations or by September 10, 2026. Within 30 days of the later of September 10, 2026 or the date on which a class members distribution instructions are received, Ritchie needs to make the distribution to the class members eligible for an immediate distribution (e.g. former employees).
If you are a class member eligible for an immediate distribution (e.g. as a former employee) and if you submitted distribution instructions before September 10, 2026, you should receive payment in the middle of October. If you have not yet submitted an election distribution form, then you can request one from the Plan Administrator:
Administrative Committee of
The People Business Employee Stock Ownership Plan
P.O. Box. 1186
Fresno, CA 93715
Telephone (559) 233-6668
The Plan Administrator is different than the Settlement Administrator. If you have are eligible for and have not received a distribution by October 31 and previously submitted an election distribution form, contact the Plan Administrator.
For questions about the settlement procedures or forms and information about you including your settlement payment, please contact the Settlement Administrator:
Ritchie ESOP Settlement
P.O. Box 2002
Chanhassen MN 55317-2002
Email: RitchieESOPSettlement@noticeadministrator.com
Telephone (Toll Free): 855-493-5328
For additional information about the settlement, please visit www.RitchieESOPSettlement.com
For questions about the Lawsuit or the Settlement overall (and if the Settlement Administrator cannot answer your questions), please contact Class Counsel at RitchieESOPSettlement@thebartonfirm.com
Summary of Lawsuit
This lawsuit alleges that Ritchie Trucking Service Holdings, Inc. (“Ritchie Holdings” or the “Company”) and other fiduciaries of the People Business Employee Stock Ownership Plan (the “ESOP” or the “Plan”) violated the Employee Retirement Income Security Act of 1974 (“ERISA”) and breached their fiduciary duties and engaged in prohibited transactions in connection with a transaction on December 31, 2018, which caused the ESOP to purchase Company stock for more than fair market value.
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Before December 31, 2018, Ritchie Holding’s largest client announced that they were making changes that would decrease Ritchie Holding’s market share and revenue. Despite these changes, the owners of Ritchie Holdings sold the Company to the ESOP on December 31, 2018 for $19,573,000 for 2 million shares of Company stock. Had the company executives provided this information to the ESOP’s advisors and the Trustee performed a prudent investigation, the ESOP would not have purchased the Company stock for more than fair market value.
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The Court has certified the following Class:
All participants in the ESOP from December 31, 2018, or any time thereafter until December 31, 2024 (unless the participant terminated without vesting) and those participants’ beneficiaries other than the Excluded Persons.
Excluded from the Class are: (a) Defendants; (b) any fiduciary of the Plan; (c) the officers and directors of Ritchie Trucking or of any entity in which the individual Defendants have a controlling interest; (d) immediate family members of any of the foregoing excluded persons, and (e) the legal representatives, successors, and assigns of any such excluded persons.
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The Complaint was filed on December 30, 2021. Certain Defendants moved to dismiss the Complaint on April 4, 2022 and others filed answers to the complaint. While the motions to dismiss were pending, the Parties engaged in settlement discussions including with two mediators. The parties reached a settlement on behalf of the class, which has been approved by the Court.
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After Defendants’ motions to dismiss were fully briefed, the parties expressed an interested in engaging in mediation after some discovery. Mediation sessions were held on January 23, 2023 and April 2, 2024 with two separate experienced mediators. After the mediation sessions, the parties reached a settlement in principle on May 7, 2024, which was formalized in an executed settlement agreement on March 24, 2025.
Under the terms of the settlement agreement, Defendants have agreed to make a cash payment of $485,000 into a Settlement Fund to resolve all of the claims of the Class. After subtracting any court-approved attorney’s fees, expenses and service award to Class Representative, the Net Cash Settlement Fund, if any, will be distributed to the Class pursuant to the Plan of Allocation. Additionally, the Settlement Agreement provides that the principal balance of the loans associated with the 2018 Transaction will be reduced by $1.4 million as of January 1, 2024. The Settlement Agreement also requires releasing of 115,000 shares from the ESOP's Suspense Account and allocated to class member accounts. The ESOP Trustee’s valuation advisor has concluded that the debt from the 2018 ESOP Transaction decreases the value of Ritchie Trucking Service Holdings, Inc. ("Ritchie") stock. If the debt of Ritchie had been $1.4 million less as of December 31, 2023, the value of Ritchie stock (as concluded by ESOP Trustee’s valuation advisor) would have been $2.26 per share instead of $1.60 per share (or an increase of 67 cents per share) and the value of all stock held by the ESOP would have been worth $1.33 million more as of December 31, 2023.
Plaintiff filed a Motion for Preliminary Approval of Settlement on May 21, 2025.
Plaintiff filed a Motion for Final Approval on November 21, 2025. The United District Court for the Eastern District of California granted Final Approval on December 23, 2025.
The Court issued Final Judgment on January 23, 2026.
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Final Judgment - January 23, 2026
Order Granting Final Approval - December 23, 2025
Motion for Final Approval - November 21, 2025
Motion for Attorneys’ Fees - November 21, 2025
Motion for Service Award - October 30, 2025
Order Certifying Class & Granting Preliminary Approval - September 19, 2025
Motion for Preliminary Approval - May 21, 2025
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Whom to Contact for More Information
If you are a member of the proposed class or you have information which might assist us in the prosecution of these allegations, please contact one of the following persons:
R. Joseph Barton, Esq. jbarton@thebartonfirm.com
Ming Siegel, Paralegal ming@thebartonfirm.com
The Barton Firm LLP
1633 Connecticut Ave. NW Suite 200
Washington, DC 20009
(202) 734-7046