$6.4 million judgment upheld in DirecTV case
The 5th Circuit U.S. Court of Appeals has upheld a $6.49 million judgment against a former Mississippi subcontractor of satellite television giant DirecTV for inflating the value of company stock employees were allowed to purchase.
Bruister & Associates Inc. was a Meridian-based subcontractor for DirecTV that performed installation services. As part of his business, owner Herbert Bruister set up an Employee Stock Ownership Plan, according to court records.
In 2014, after a 19-day trial, U.S. District Judge Daniel Jordan found Bruister and his representatives improperly influenced the valuation of the stock for his company, which caused employees to pay far more for stock than what it was worth. The judge also entered an injunction preventing Bruister and his representatives from acting in the future as fiduciaries or service providers to Employment Retirement Income Security Act covered plans. Jordan ruled employees were owed $4.5 million for overpayments. He also found Bruister liable for $1.98 million.
The lawsuit was brought by U.S. Department of Labor and two citizens.
Read more: http://www.clarionledger.com/story/news/local/2016/09/26/64-million-judgment-upheld-against-former-directv-subcontractor/91111822/
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