It was announced that the U.S. Department of Labor filed a lawsuit against PBI Bank, Inc., to recover losses to the Miller’s Health System Employee Stock Ownership Plan.
Miller’s Health System manages long-term care and assisted-living facilities, including Miller’s Merry Manor in LaGrange.
The Department of Labor alleges that the bank approved the purchase of company stock in excess of the fair market value of the stock. The suit also claims that PBI Bank approved financing at an excessive interest rate.
The suit alleges that PBI violated the Employee Retirement Income Security Act and seeks to require the bank to restore losses suffered by the plan, along with interest.