Chicago, IL | April 2, 2025 — National ESOP trustee, GreatBanc Trust Company, announces a favorable decision in Rush v. GreatBanc Trust Company, et al; Case No. 1:19-cv-00738, concerning the sale of 100% ESOP-owned addressable marketing firm, SG 360, formerly known as Segerdahl. GreatBanc served as ESOP trustee from the plan’s inception in 2003 through the sale of the company in 2016.
The class-action suit was heard in The United States District Court for the Northern District of Illinois, Eastern Division, which handed down its ruling on March 31, 2025. The Court found in favor of GreatBanc and other defendants on all counts, validating the fiduciary process undertaken in connection with the sale. The Court showed deference to witness testimony of GreatBanc President and CEO, James Staruck, who took part in the transaction, and testimony of individuals from the firm’s financial and legal advisors, Stout and Faegre Drinker (formerly Drinker Biddle), respectively.
Julie Govreau, GreatBanc’s General Counsel, commended the court’s decision, stating, “We are very pleased with the outcome. This ruling not only affirms the validity of our process, but also underscores the importance of diligence in ESOP transactions. We are grateful to our legal team for their hard work and dedication throughout the lengthy litigation process.”
The Court’s decision reinforces GreatBanc’s devotion to its fiduciary duty and highlights the organization’s commitment to upholding the tenets of employee ownership.
Staruck added, “This is a victory not only for GreatBanc and our advisors in this transaction, but also for our clients, stakeholders, and the entire ESOP community. We will continue to build on this success and remain steadfast in our efforts to provide life-changing benefits, financial freedom, and dignified retirements to employee owners across the country.”
GreatBanc extends its appreciation to its supporters for their unwavering encouragement and trust throughout the proceedings.
About GreatBanc
GreatBanc Trust Company is a full-service trust company and independent ERISA fiduciary specializing in Employee Stock Ownership Plans (ESOPs). Founded in 1989, the company is the longest-standing institutional ESOP fiduciary in the United States, employing the largest team of ESOP experts in the industry. An employee-owned company itself, GreatBanc provides trustee and fiduciary services for clients of all sizes across 48 states, distributing more than one billion dollars to hard-working employees and their families each year. For more than three decades, GreatBanc has been committed to harnessing the life-changing potential of employee ownership.