USW Supports Lawsuit against Appvion Executives, Fiduciaries to Reclaim Lost Employee Stock Value

PITTSBURGH, Nov. 28, 2018 /PRNewswire/ -- The United Steelworkers (USW) today said that the union strongly supports a lawsuit filed on behalf of participants in the Appvion Employee Stock Ownership Plan (ESOP) to recover the value of their investments – lost when the company was liquidated in bankruptcy court earlier this year.

Through the ESOP, unionized hourly employees as well as salaried personnel purchased Appvion in 2001 and continued to buy its stock for nearly 16 years, until the company filed its bankruptcy case in 2017.

The lawsuit, which was filed by the ESOP Administrative Committee, seeks to hold former Appvion executives and other parties who performed services associated with the ESOP accountable for allegedly breaching their fiduciary responsibilities and misrepresenting the value of the company to its employee-investors for the purpose of fraud.

USW District 2 Director Michael Bolton said that the USW has been a staunch advocate for the interests of its members and retirees throughout Appvion's bankruptcy process.

"The ESOP was rendered worthless by the company's liquidation, and too many of our families lost a large portion their life savings," Bolton said. "Although the lawsuit may be complex and may not be resolved quickly, the USW will continue to demand justice for those who were harmed in the ESOP's collapse."

"We are grateful that the administrative committee has stepped up to protect the interests of the workers and retirees who are now dealing with the consequences resulting from the tragic collapse of what was once and should still be a successful, employee-owned paper company," Bolton said.

A group consisting of the company's former lenders purchased Appvion's business in a sale that closed in June 2018. Through the years, the USW and its predecessor unions have represented thousands of workers at Appvion operations in Wisconsin, Pennsylvania and Ohio.

The USW represents 850,000 men and women employed in metals, mining, pulp and paper, rubber, chemicals, glass, auto supply and the energy-producing industries, along with a growing number of workers in public sector and service occupations.

More information, contact: Tony Montana (412) 562-2592 or [email protected]

SOURCE United Steelworkers (USW)

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