INSIDE THIS ISSUE:

The ESOP Association submits comments on corporate tax reform to House committee; ESOP champion Olympia Snowe not running for reelection; Pro-ESOP legislation garners support; Bear Stearns agrees to settle stock-drop litigation; District court gives preliminary approval to settlement in King & Prince Seafood Corporation stock-drop litigation; First Federal Bank ESOP participants move court for final approval of settlement; Financial services groups request status report from DOL on re-proposal of regulation redefining term “fiduciary”.

Excerpt from District Court Gives Preliminary Approval to Settlement in King & Prince Seafood Corporation Stock-Drop Litigation

On April 4th, the United States District Court for the Southern District of Georgia gave preliminary approval to a settlement in a class action brought by participants in the King & Prince Seafood Corporation Employee Stock Ownership Plan. The participants alleged they were deprived of benefits on account of changes made to the plan’s distribution policies.