May v. Scott
This case involves a dispute between Plaintiffs Max May and Billy Thompson and Defendant Lawrence Scott concerning Scott's acquisition of Memphis Equipment Company (MEC) and subsequent financial misconduct. Scott, then President of MEC, orchestrated the purchase of MEC stock from its Employee Stock Ownership Plan (MEC ESOP) in 1999 without the knowledge or approval of other board members, leading to allegations of breach of fiduciary duty and ERISA violations. The Court had previously granted partial summary judgment against Scott for breaching fiduciary duties under Tennessee law and for failing to disclose the stock purchase transaction under ERISA. Following a non-jury trial, the Court found Scott liable for wrongful conversion of MEC funds for personal use, awarding $172,203.66 in damages. Additionally, for ERISA violations related to the non-disclosure, Scott was found personally liable to restore $455,720.78 to the MEC ESOP, and his interest in the ESOP was forfeited. The Court also granted injunctive relief against Scott and awarded attorney's fees to the plaintiffs under ERISA.