Published
May 25, 2026
Updated
November 2, 2026
Dallas BBQ workers who held vested W BBQ Holdings ESOP stock at any time between 2016 and 2025 are automatically class members in a $22.5 million ERISA settlement. There is no claim form, and payment is automatic.
What Is the Dallas BBQ ESOP Settlement About?
Dallas BBQ workers who held vested stock in the company's Employee Stock Ownership Plan at any point between July 29, 2016 and December 31, 2025 are covered by a $22.5 million ERISA settlement that was preliminarily approved in the U.S. District Court for the Southern District of New York. Payment is automatic, with no claim form. The only optional step was the Rollover Election Form, which routes the payment into an IRA or other qualified retirement account instead of a check; it was due July 24, 2026.The Dallas BBQ ESOP lawsuit, captioned Lloyd v. Argent Trust Company, Case No. 1:22-cv-04129-DLC, was filed on May 20, 2022 by named plaintiff Jamaal Lloyd and other Dallas BBQ ESOP participants. The complaint alleges that in 2016, the Defendants violated the federal Employee Retirement Income Security Act (ERISA) in connection with the sale of the Dallas BBQ restaurant chain (incorporated as W BBQ Holdings, Inc.) to its own ESOP for approximately $99 million, which the lawsuit alleged was an inflated price that exceeded fair market value.
The named Defendants: Argent Trust Company, which served as the ESOP's trustee for the transaction; the Wetanson family Defendants (Herbert Wetanson, Gregor Wetanson, and Stuart Wetanson) who were the original owners of the Dallas BBQ stock; the W BBQ Holdings Board of Directors; and two Wetanson-related trusts (the Gregor Wetanson 2015 Gift Trust and the BBQ Trust). The Defendants deny that they violated any law or duty to the ESOP and argued throughout the litigation that the sale was for fair market value.
The parties settled on the eve of trial, days before a March 16, 2026 bench trial was scheduled to begin before Judge Denise Cote. Class Counsel describes the settlement as recovering approximately 71 percent of the losses class members claimed they suffered from the 2016 ESOP transaction, a recovery rate they characterize as exceeding typical outcomes in comparable ERISA class actions.
Status
Preliminarily Approved
Deadline
July 24, 2026
rollover form (optional) and objection deadline · final fairness hearing August 14, 2026
Payout
$24.70 per Share
automatic for cashed-out former employees; pro rata cash plus stock value increase for current ESOP holders · estimated $22.5M total value
Claim Form Required?
No — Automatic Payment
the only optional form routes payment to a qualified retirement account
Proof Required?
Only for the Optional Rollover
the automatic check needs no documentation; the optional Rollover Form opens with the Claimant ID printed on the mailed notice plus the class member’s last name
What Is an ESOP, and Why Does It Matter Here?
An Employee Stock Ownership Plan (ESOP) is a retirement plan that holds company stock for the benefit of employees. Workers don't pay anything into an ESOP out of their paychecks the way they would with a 401(k); instead, the company contributes shares of its own stock into individual employee ESOP accounts. Over time, as the employee vests, those shares belong to the employee. When the employee leaves the company, they cash out the shares (or roll them over into another retirement account) at whatever the current share price is.The catch is the share price. Because most ESOP-sponsoring companies are private (their stock is not publicly traded), the share price is set by appraisers and trustees rather than a public market. When a company is first sold to its own ESOP (the so-called "ESOP Transaction"), the trustee is supposed to negotiate the purchase price on behalf of the employees as if they were a normal outside buyer. If the trustee instead overpays for the company, the employees end up with stock worth less than they paid for it, and the previous owners walk away with the inflated profit. ERISA imposes a fiduciary duty on the trustee to prevent exactly this outcome.
The Lloyd v. Argent Trust complaint alleged this is what happened at Dallas BBQ in 2016. According to the complaint, the ESOP purchased 400,000 shares of W BBQ Holdings (an 80 percent stake in the company) for approximately $99 million, financed by $92 million in seller debt owed back to the Wetanson family. The plaintiffs alleged Argent Trust failed in its fiduciary duty to negotiate a fair price for the employees, and the Wetansons walked away with proceeds the plaintiffs alleged were unlawfully gifted to family trusts. Defendants denied all wrongdoing.
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Who Qualifies for the Dallas BBQ ESOP Settlement?
The class is defined as:• All participants in the W BBQ Holdings, Inc. Employee Stock Ownership Plan on or after July 29, 2016
• Who vested in whole or in part under the terms of the ESOP
• And the beneficiaries of such participants
Excluded from the class: the Defendants and their immediate family members, any fiduciary of the ESOP, and any current or former officers or directors of W BBQ.
The class is mandatory. The Court preliminarily approved this as a "non-opt-out" class action, meaning class members cannot exclude themselves to pursue a separate lawsuit. This is common in ERISA cases that involve plan-wide relief affecting all plan participants. Class members had three options: (1) the default check payment, (2) a retirement-account rollover through the Rollover Form, due July 24, 2026, or (3) a written objection, also due July 24, 2026. Objectors still receive the payment; an objection tells the Court why the objector thinks the Settlement should not be approved.
Class members are identified from plan records. The Settlement Administrator, Atticus Administration LLC, has the ESOP participant list directly from the plan's records and mailed notices to the addresses on file. Address updates are handled by the Settlement Administrator through the official Settlement Website. The class is estimated to include approximately 1,000 W BBQ Holdings ESOP participants and beneficiaries.
How Much Will I Get From the Dallas BBQ ESOP Settlement?
The settlement provides a combination of cash, stock-value increase through debt forgiveness, and future distribution rights. The total estimated value is approximately $22.5 million across all class members. Here is the breakdown:| Settlement Component | Amount | Who Receives It |
|---|---|---|
| Cash escrow fund | $10,000,000 | All class members (split by Plan of Allocation); used to pay attorneys' fees, expenses, administration costs, and service awards first, then distributed |
| Loan principal forgiveness | $12,000,000 | Increases the value of Dallas BBQ stock held by current ESOP participants |
| Accrued interest forgiveness | $9,700,000 | Further increases the value of Dallas BBQ stock held by current ESOP participants |
| Per-share cashout payment | $24.70 per share | Class members who cashed out shares at a 12/31/2025 or earlier price |
| Five-year installment distributions | Equal annual amounts | Former employees with ESOP accounts (starting the year after settlement is final) |
| Five-year installment distributions | Equal annual amounts | Current employees who separate within one year of final approval AND have account balances under $5,000 |
How the cash distribution works. The Plan of Allocation, filed with the Court and posted on the official Settlement Website, divides the cash fund into two categories. Class members who already cashed out their Dallas BBQ shares from the ESOP receive $24.70 for every share they cashed out based on a share price of December 31, 2025 or earlier. Class members who still hold vested Dallas BBQ shares in their ESOP account after December 31, 2025 receive a pro rata share of what is left in the cash fund after court-approved deductions, with a partial offset for the related DOL settlement payments (described below).
What current ESOP participants additionally get. Beyond cash, current ESOP participants benefit from the $21.7 million in combined loan and interest forgiveness, which directly increases the value of the Dallas BBQ stock held in their ESOP accounts. That increase will be calculated and applied in 2027.
The DOL Settlement and Why It Offsets Part of the Payment
There is a parallel Department of Labor settlement that affects how the private Lloyd settlement is allocated. The DOL settlement matters most for current Dallas BBQ employees.Background. Two years after the private plaintiffs filed the Lloyd lawsuit in 2022, the U.S. Department of Labor filed its own enforcement action in December 2024 against Argent Trust Company and the Wetansons (Herbert and Gregor), alleging the same 2016 ESOP transaction violated ERISA. The DOL settled its case in February 2026 for a total value of $15 million.
What the DOL settlement provides:
• $1 million in cash to the ESOP, distributed over 18 months (April 2026 through October 2027)
• $14 million reduction in the principal of the former owners' Seller Notes (which increases the value of Dallas BBQ stock held by current ESOP participants)
• Cancellation of the Wetansons' warrants (similar to stock options)
The catch: only current employees who work at least 1,000 hours in 2026 or 2027 and remain employed at year-end receive the DOL cash allocation. Class Counsel estimates about 15 percent of class members (current employees) will receive DOL cash, while 85 percent (former employees) will not.
How this affects Lloyd settlement payments. To avoid double recovery, the Plan of Allocation in the Lloyd settlement includes a 60 percent partial offset against the 2026 DOL cash allocation for current employees. For a current employee receiving DOL cash in 2026, 60 percent of that DOL amount is subtracted from the private settlement payment. Payments expected in 2027 are not subject to the offset because they will not yet have been made when the Lloyd settlement is distributed. The offset was decided by neutral mediator Judge Stewart Aaron, and the Defendants have agreed to it. Former employees are unaffected by the offset because they do not receive any DOL cash.
How Are Payments Made?
Payment in the Dallas BBQ ESOP settlement is automatic; class members are not required to file a claim.Checks (the default): the Settlement Administrator mails each class member’s check to the address it has on file. Address changes are made with the Settlement Administrator through the official Settlement Website, and a check returned as undeliverable can delay a payment indefinitely.
Rollovers: a class member who prefers to have the payment sent directly to a qualified retirement account, such as an IRA, instead of receiving a check returns a signed Rollover Election Form, online through the official Settlement Website or by mail postmarked by July 24, 2026. The online form opens with the Claimant ID printed on the mailed notice and the class member’s last name; the official Settlement Website has a contact form for requesting a lost Claimant ID.
Objections: written objections were due to the Court and the Settlement Administrator by July 24, 2026, and objectors could also be heard at the Final Fairness Hearing on August 14, 2026 at the Southern District of New York courthouse in Manhattan. Objecting does not remove anyone from the class, and objectors still receive their settlement payment.
Key Dallas BBQ ESOP Settlement Deadlines
• Rollover Election Form deadline (for a rollover instead of a check): Friday, July 24, 2026 (postmarked if mailed)
• Written objection deadline (for class members who disagree with the Settlement): Friday, July 24, 2026 (postmarked if mailed)
• Notice of Intention to Appear at Fairness Hearing (for anyone who wishes to speak at the hearing): Friday, July 24, 2026
• Final Fairness Hearing: Friday, August 14, 2026 at 2:00 p.m. Eastern, U.S. District Court for the Southern District of New York in Manhattan, before Hon. Denise Cote
• Class period: July 29, 2016 through December 31, 2025
• Class certified: October 31, 2025
When Will I Get Paid?
Payment timing depends on Court approval and any appeals.• Final Fairness Hearing: August 14, 2026
• Best case (no appeals): cash payments mailed on or before March 15, 2027 (estimated by Class Counsel, contingent on Defendants providing the data necessary to calculate individual recoveries)
• Stock value increase: applied in 2027
• Five-year installment distributions for former employees: first installment in the calendar year after the Settlement becomes final (likely 2027), then annually for the following four years
• If appeals are filed: distribution can be delayed by 12 to 24 months or longer
Who Are the Lawyers and How Are They Being Paid?
Class Counsel is Cohen Milstein Sellers & Toll PLLC, specifically attorneys Michelle C. Yau, Daniel R. Sutter, Caroline E. Bressman, Ryan A. Wheeler, and Elizabeth M. McDermott. Cohen Milstein is a national plaintiffs' firm that specializes in ERISA and ESOP litigation.Class Counsel will apply to the Court for:
• Attorneys' fees of up to $6,200,000
• Litigation expenses of up to $850,000
• Service awards of $25,000 each for the two named Class Representatives (in recognition of their time producing documents, attending settlement conferences, and preparing for trial)
These amounts will be paid from the $10 million cash escrow fund before the remainder is distributed to class members. Class members may object to these requested amounts as part of the broader objection process. The Court will review and approve (or reduce) each amount; it may award less than what Class Counsel requests.
Class Counsel has worked on this case since May 2022 on a contingent basis, meaning they have not been paid anything to date and bear the full risk if the Court denies the requested fees.
What Is an Independent Fiduciary and Why Does One Matter Here?
ERISA settlements involving ESOP plan-wide relief require review by an Independent Fiduciary — a neutral third party specializing in ERISA who evaluates whether the Settlement is fair and reasonable to the plan participants. The Independent Fiduciary will review the Settlement terms and the value of the benefits described above, and will submit a written report with conclusions before the Final Fairness Hearing.If the Independent Fiduciary objects to any aspect of the Settlement, it will explain the basis in writing. The parties may attempt to address those concerns. The Independent Fiduciary's report will be filed with the Court by the objection deadline and posted on the official Settlement Website so class members can review it before the Final Fairness Hearing.
What Happens If the Court Doesn't Approve the Settlement?
If the Court denies final approval at the August 14, 2026 hearing, or if the approval is reversed on appeal, the Settlement becomes void and the case returns to litigation. None of the cash payments, loan forgiveness, stock value increases, or distribution provisions will occur. The trial would presumably be rescheduled, and the outcome would be uncertain (the plaintiffs might win more, less, or nothing at all at trial).Class Counsel describes the proposed settlement as recovering approximately 71 percent of claimed losses, which they argue substantially exceeds typical ERISA settlement recoveries. This figure informs class members' decision whether to support, object to, or remain neutral on the Settlement.
Watch Out for Dallas BBQ Settlement Scams
Class action settlements attract scammers who try to victimize class members by impersonating administrators. A few absolute rules:• Atticus Administration does not charge class members any fee to process a settlement, release a payment, or expedite a check. The Settlement is 100 percent free for class members. Anyone asking for an "activation fee" or "release fee" is running a scam.
• The Settlement Administrator does not ask for bank account passwords, full credit card numbers, or other sensitive credentials, and it does not need them to mail a check or process a rollover.
• The official Settlement Website is DallasBBQESOPSettlement.com. Emails or texts linking to a different domain are not from the administrator.
• Legitimate checks are drawn from a settlement administrator account.
Other Related Class Action Settlements
ERISA class actions involving ESOP transactions have produced some of the largest single-plan settlements in recent years. Class membership in one ESOP settlement does not affect eligibility for any unrelated class action settlement.Other related OCA coverage:
• OCA database of open class action settlements — complete list of active consumer cases
• Latest class action news and updates
Settlement Website: DallasBBQESOPSettlement.com
Submit Rollover Form (Optional) — Deadline July 24, 2026
Frequently Asked Questions About the Dallas BBQ ESOP Settlement
Who qualifies?Anyone who participated in the W BBQ Holdings ESOP between July 29, 2016 and December 31, 2025 and vested in whole or in part, plus their beneficiaries. Class is mandatory (no opt-out).
How much will I get?
$24.70 per share for cashed-out former employees. Current ESOP participants get a pro rata cash share plus a stock value increase from $21.7 million in loan and interest forgiveness, plus future five-year installments where applicable. Total settlement value approximately $22.5 million.
Is a claim form required?
No. Payment is automatic. The only optional form is the Rollover Election Form, for class members who prefer to have the payment routed to an IRA or other retirement account instead of receiving a check.
What is the deadline?
July 24, 2026 for the rollover form (or for an objection).
Can I opt out?
No. This is a mandatory (non-opt-out) class action, common in ERISA cases.
What is the DOL settlement?
A separate $15 million Department of Labor enforcement settlement from February 2026 against the same Defendants. Only current Dallas BBQ employees who work 1,000+ hours in 2026 or 2027 receive DOL cash allocations. The Lloyd settlement includes a 60 percent partial offset for the 2026 DOL cash to avoid double recovery.
When will I get paid?
Estimated on or before March 15, 2027 (assuming Court grants final approval August 14, 2026 and no appeals). Five-year installments for former employees begin the year after the Settlement is final.
Sources
• Official Settlement Website: DallasBBQESOPSettlement.com• Lloyd, et al. v. Argent Trust Company, et al., Case No. 1:22-cv-04129-DLC, U.S. District Court for the Southern District of New York (filed May 20, 2022; preliminarily approved May 2026)
• Court-Approved Class Notice (May 6, 2026)
• Plan of Allocation (filed with Settlement Agreement)
• Cohen Milstein: $22.5M ESOP Settlement Gets Preliminary Approval
• Cohen Milstein Case Study: WBBQ ESOP Litigation
• Bloomberg Law: BBQ Chain Workers Ink Stock Plan Class Deal Worth $22.5 Million
• NCEO: DOL Secures $15 Million in Relief for Dallas BBQ ESOP
• Class Counsel: Cohen Milstein Sellers & Toll PLLC (Michelle C. Yau, Daniel R. Sutter, Caroline E. Bressman, Ryan A. Wheeler, Elizabeth M. McDermott)
• Settlement Administrator: Atticus Administration LLC
• Presiding Judge: Hon. Denise L. Cote
• Mediator for Plan of Allocation: Hon. Stewart Aaron (Ret.)
• Statutory Basis: Employee Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001 et seq.
• U.S. Department of Labor: ERISA Overview
About This Page
This page summarizes the Dallas BBQ Employee Stock Ownership Plan class action settlement in Lloyd v. Argent Trust Company, 1:22-cv-04129-DLC (S.D.N.Y.). OpenClassActions.com is a consumer news site and is not the Settlement Administrator, Class Counsel, the Department of Labor, or a law firm. We do not process settlement payments or rollovers. The official Settlement Website (DallasBBQESOPSettlement.com), the Settlement Agreement, and the Court-Approved Class Notice are the authoritative sources for eligibility, allocation, and timing. Questions about individual allocations go to the Settlement Administrator through the official Settlement Website. This page does not address the tax treatment of settlement payments or rollovers.
For more class actions keep scrolling below.
Settlement Amount
$22,500,000 (estimated total value: $10M cash + $12M loan principal forgiveness + $9.7M accrued interest forgiveness)
Case Title
Lloyd, et al. v. Argent Trust Company, et al.
Case Number
1:22-cv-04129-DLC
Court
U.S. District Court for the Southern District of New York
Final Approval Hearing
August 14, 2026 at 2:00 p.m. Eastern
U.S. District Court for the Southern District of New York, Manhattan, before Hon. Denise L. Cote
Administrator
Atticus Administration LLC
Official Website
Dallas BBQ ESOP Settlement.com
