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Sun Capital - 2019 Judgement on Remand ($3.5 Million Owed!)

2019.11.27  Quoting from Bloomberg Law Benefits & Executive Compensation:

Private Equity Group Owes Teamsters’ Pension Fund $3.5M

A Teamsters’ pension plan can recover $3.5 million more from a private equity group that bought an employer that stopped participating in the plan when it went bankrupt.

The amount accounts for mandatory interest, damages, fees, and costs the plan is entitled to as the prevailing party in a withdrawal liability case under the Employee Retirement Income Security Act.

The ruling is the latest development in a long-running lawsuit where the New England Teamsters and Trucking Industry Pension Fund sought to hold Sun Capital Partners liable for withdrawing from the plan. Sun Capital entities held a combined 100 percent stake in the employer after it withdrew from the plan, entered into bankruptcy, and were assessed more than $4.5 million in withdrawal liability.

The U.S. Court of Appeals for the First Circuit ruled in the funds’ favor, holding that the private equity groups could be liable.

Judge Douglas P. Woodlock of the U.S. District Court for the District of Massachusetts Nov. 26 amended his previous judgment to include interest of not less than $2.2 million, liquidated damages of $903,307, and fees and costs in the amount of $340,977.

Kirkland & Ellis LLP and Murphy & King PC represent Sun Capital. Feinberg Campbell & Zack PC represents the fund.

The case is Sun Capital Partners III, LP v. New England Teamsters & Trucking Indus. Pension Fund, 2018 BL 433105, D. Mass., No. 1:10-cv-10921-DPW, 11/26/18.