Western Global Airlines $14.5M ESOP Settlement

If you were a participant in the Western Global Airlines, Inc. Employee Stock Ownership Plan (ESOP) at any point since its inception, you might be eligible to claim a portion of a $14,500,000 class action settlement.

Western Global Airlines, Inc. has agreed to this settlement to resolve a class action lawsuit alleging violations of the Employee Retirement Income Security Act of 1974 (ERISA) related to the ESOP's acquisition of company stock.

The class members include all individuals who have participated in the Western Global Airlines, Inc. ESOP, as well as their beneficiaries, at any time since the plan's inception.

The lawsuit has been certified as a mandatory class action, meaning you cannot opt out of the class or the settlement benefits.

The settlement provides for the distribution of the net proceeds to class members based on the number of vested shares they held. The net proceeds are calculated after deducting court-approved attorneys’ fees, expense reimbursements, settlement administration costs, and service awards. Attorneys’ fees will not exceed 29% of the settlement amount.

The distribution will be proportional to the vested shares each class member held. For example, if a class member held 1% of the total vested shares, they would receive 1% of the net settlement fund.

The exact amount each class member receives will depend on the total number of vested shares and the net settlement fund after deductions.

Class members do not need to file a claim to receive compensation. Payments will be automatically distributed based on the records of the ESOP.

If you wish to have your payment rolled over into another retirement account, you must complete an Election Form by December 24, 2024.

Class members can receive their payments through the following methods:

• Direct check mailed to the class member.
• Rollover to an individual retirement account or other eligible retirement plan if elected.

The settlement fund of $14,500,000 will cover payments to class members, attorneys’ fees, and other costs associated with the settlement:

• Attorneys’ fees: Not to exceed 29% of the settlement amount.
• Settlement administration costs and service awards: Deducted from the settlement fund.

The awards will be distributed approximately 60 days after the final approval of the settlement, provided there are no appeals.

The lawsuit alleged that the defendants violated ERISA by causing the ESOP to pay more than fair market value for Western Global Airlines stock. The settlement allows both parties to avoid the cost and risk of a trial and provides compensation to class members.