The class has been certified in an action filed against manufacturer Amsted Industries, Inc. on behalf of non-retired employee stock ownership plan participants who allege that the company's trustees and administrators violated the federal Employee Retirement Income Security Act by improperly reducing the benefits obtainable by participants. The action seeks unspecified compensatory damages.

The court ruled that, in 1999, Amsted acquired another firm for an exaggerated price without performing an adequate independent evaluation for the benefit of Amsted's ESOP. As a result of the purchase, Amsted's stock value rose 32 percent in one year, prompting many participants to request distributions. The action alleges that, due to Amsted's mismanagement, the large volume of distribution requests significantly depleted the ESOP's assets.

Amsted responded to the depletion by amending the ESOP to make it more difficult to apply for and receive distributions. A group of current Amsted employees, along with a group of retirees, brought numerous lawsuits alleging Amsted breached its fiduciary duties under the Employee Retirement Income Security Act by reducing the benefits obtainable by participants. The court consolidated the numerous actions, separating the actions made by retirees from those made by nonretirees. The class in this action is limited to employees who have not yet retired.