Judge OKs class-action against Tribune ESOP trustee

Court Watch 2011/03/11 02:54   Bookmark and Share

Tribune Co. employees at the time of company’s 2007 leveraged buy-out are eligible to join a class action lawsuit against the ESOP trustee that represented their interests in the takeover by billionaire Sam Zell, a federal judge ruled Friday.

Any Tribune Co. employee or beneficiary who received or were entitled to an allocation to their employee stock ownership plans (ESOP) stock or ESOP cash accounts are now automatically members of the class suing Lisle-based GreatBanc Trust Co. for failing to fulfill its fiduciary responsibility in the deal, said Daniel Feinberg, an attorney representing the employees and other plaintiffs in the lawsuit.

U.S. District Judge Rebecca Pallmeyer’s ruling is the second set-back in less than a week for GreatBanc, the remaining defendant with significant liability in a 2008 lawsuit brought by Dan Neil and other Los Angeles Times staffers against the architects of the ill-fated going-private transaction.

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