This page provides the answers to class members’ most frequently asked questions.
The information provided is in summary form and is not intended as a complete explanation of your rights. For full and complete information, you are directed to review carefully the Notice.
No, you are not being sued.
This Lawsuit was filed on behalf of participants in the Lite Star ESOP and their beneficiaries (the “Lawsuit”). The Lawsuit asserts claims against Prudent Fiduciary Services, LLC, Miguel Paredes, B-K Lighting, Inc., Nathan Sloan, Kathleen A. Hagen, the Estate of Douglas W. Hagen, and the Lite Star ESOP Committee. and has been litigated in the U.S. District Court for the Eastern District of California since April 2023.
The Lawsuit asserts that Defendants violated a federal statute, the Employee Retirement Income Security Act of 1974 (“ERISA”), in connection with the ESOP’s purchase of Lite Star stock in 2017 for approximately $25 million (the “ESOP Transaction”). Plaintiff alleges that the ESOP paid more than fair market value for B-K Lighting stock. Specifically, the Lawsuit alleges that some of the Defendants were ESOP fiduciaries who violated their duties under ERISA § 404, 29 U.S.C. § 1104, ERISA § 405, 29 U.S.C. § 1105 ERISA § 406, 29 U.S.C. § 1106, and ERISA § 410, 29 U.S.C.§ 1110 in connection with the ESOP purchase of B-K Lighting stock. The Lawsuit also asserts claims against the Selling Shareholder and his successors for participating in the ERISA violations when he sold his B-K Lighting stock to the ESOP.
The Defendants have denied, and continue to deny, all the allegations and claims in the Lawsuit and any wrongdoing regarding the ESOP Transaction, and have vigorously defended the Lawsuit. There has been no finding of liability or wrongdoing by any of the Defendants in the Lawsuit.
The Class is defined as: “All participants and beneficiaries of the Lite Star, Inc. ESOP from the date of its inception through December 31, 2024 (unless they terminated employment without vesting), excluding the individual Defendants and their family members or beneficiaries.”
The Court did not decide in favor of any party. Instead, both sides agreed to a settlement. That way, both sides avoided the cost and risk of a trial, and Class Members will get the value of the Settlement now, rather than continuing with the litigation where there is a chance the Class would receive nothing (i.e., if Plaintiff ultimately loses the case). The Class Representatives and Class Counsel think the Settlement is in the best interest of all Class Members.
If the Settlement is approved, the Class will receive the following benefits:
The total value the Settlement consideration listed above is estimated to be $2.25 million.
Under the proposed Settlement, if you have an active ESOP account, the value of the Lite Star shares held in your account will be greater than they otherwise would be absent the settlement, thereby providing more value to the retirement savings in your account and you will also receive a cash payment. If you have sold Lite Star stock once held in your ESOP account, you will receive a cash payment. Each Class Member will receive a total value of approximately $1.55 per vested share (either in increased share value, cash, or a combination of both). If the Settlement is approved, all Class Members will automatically receive these benefits. You do not need to complete a claim form.
The Court has appointed lawyers from the law firms Feinberg Jackson Worthman & Wasow LLP and Cohen Milstein Sellers & Toll PLLC to represent you and other Class Members. These lawyers are called Class Counsel.
You will not be charged for these lawyers’ services. If you want to be represented by your own lawyer, you may hire one at your own expense.
No. If the Court approves the Settlement, you will be bound by it and will receive whatever Settlement recovery you are entitled to under its terms. You cannot exclude yourself from the Settlement, but you may tell the Court what you don’t like about the Settlement by filing an objection on or before January 5, 2026 (see next question).
You can submit written comments or an objection that explains what you do not like about the Settlement. You may also object to the requested attorneys’ fees, expenses, and service awards, but it must be submitted on or before January 5, 2026. Your objection must be in writing, and you must provide the following information to ensure that the Court receives your objection and can properly consider it:
Again, it is very important that you file your objection on or before January 5, 2026. Failure to submit your objection to the Court and Counsel for the Parties (identified below) by this deadline shall constitute a waiver of your right to object. In other words, you cannot object to the Settlement or the requested attorneys’ fees, expenses, and service awards after the deadline, January 5, 2026.
On or before January 5, 2026, you must file or mail your objection to the Court at the Courthouse (address below). In addition, you must email and/or mail copies of your objection to all Counsel (emails and addresses below):
To Clerk of Court:
United States District Court for the Eastern District of California
2500 Tulare Street, Room 1501
Fresno, CA 93721
To Class Counsel:
Michelle C. Yau
Cohen Milstein Sellers & Toll, PLLC
1100 New York Ave. NW
Suite 500 West
Washington, DC 20005
myau@cohenmilstein.com
Daniel M. Feinberg
Feinberg, Jackson, Worthman &
Wasow LLP
2030 Addison Street, Suite 500
Berkeley, CA 94704
dan@feinbergjackson.com
To Selling Shareholder’s Counsel:
Mark A. Nebrig
Moore & Van Allen PLLC
100 N. Tryon St.
Suite 4700
Charlotte, NC 28202-4003
marknebrig@mvalaw.com
To B-K Lighting’s Counsel:
Richard Pearl
Faegre Drinker Biddle & Reath LLP
320 S. Canal St., Suite 3300
Chicago, IL 60606
rick.pearl@faegredrinker.com
To Paredes’ Counsel:
Chelsea Ashbrook McCarthy
Holland & Knight LLP
150 N. Riverside Plaza., Suite 2700
Chicago, IL 60606
chelsea.mccarthy@hklaw.com
The Court will hold a Fairness Hearing on January 21, 2026 at 10:00 a.m., before Judge Stanley Boone in the United States District Court for the Eastern District of California. The Fairness Hearing will occur at the Robert E. Coyle Federal Courthouse, 2500 Tulare Street, Courtroom 9, Sixth Floor, Fresno, CA 93721. At the Fairness Hearing, the Court will listen to any objections, comments, and arguments concerning the fairness of the proposed Settlement and the requested attorneys’ fees and expenses, and service awards.
You do not need to attend the Fairness Hearing. But you are welcome to attend the Hearing to observe or to voice your views about the Settlement or the requested attorneys’ fees, expenses, and service awards. If you plan to speak at the hearing, you must file an objection (see previous question) and state that you intend to appear and speak at the Fairness Hearing on or before January 5, 2026, and include copies of any papers, exhibits, or other evidence you will present to the Court. You must include in your objection the information listed in the previous question. You must send your objection that includes a statement that you intend to appear (with the information described in this paragraph) to the Court and all Counsel at the addresses provided in the above question.
The date and time of the Fairness Hearing may change, but any changes will be posted on this website.
You may contact the Settlement Administrator at litestaresopsettlement@noticeadministrator.com, or call at 888-246-5152.