By Steve Levine
Published: May 25, 2026
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
only optional action is the rollover form if you want payment routed to a qualified retirement account
What Is the Dallas BBQ ESOP Settlement About?
Did you work at Dallas BBQ and hold vested stock in the company's Employee Stock Ownership Plan at any point between July 29, 2016 and December 31, 2025? You are likely a class member in a $22.5 million ERISA settlement that has been preliminarily approved in the U.S. District Court for the Southern District of New York. Your payment is automatic; you do not need to file a claim form. The only optional action is the Rollover Election Form, which lets you direct your payment into an IRA or other qualified retirement account instead of receiving a check. The rollover form is 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.
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.
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. If you are a class member, the only decisions available to you are: (1) accept the default check payment, (2) submit the Rollover Form by July 24, 2026 to receive the payment as a retirement-account rollover instead, or (3) file a written objection by July 24, 2026 (you still receive the payment either way; objecting just lets you tell the Court why you think the Settlement should not be approved).
You will be contacted automatically if you qualify. The Settlement Administrator, Atticus Administration LLC, has the ESOP participant list directly from the plan's records. If your contact information is current, you should have received a mailed notice. If you believe you are a class member but did not receive a notice, contact the Settlement Administrator through the official Settlement Website to update your address.
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 Your Payment
There is a parallel Department of Labor settlement that affects how the private Lloyd settlement is allocated. Understanding the DOL settlement is important if you are a current Dallas BBQ employee.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 your Lloyd settlement payment. 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. That means if you are a current employee receiving DOL cash in 2026, 60 percent of that DOL amount is subtracted from your 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.
Do I Need to Do Anything to Get Paid?
The Dallas BBQ ESOP settlement is one of the simpler kinds of class action settlements for class members. Most class members do not need to take any action at all.If you want a check (the default): do nothing. The Settlement Administrator will mail your check to the address it has on file. If your address has changed since you left Dallas BBQ (or since the last ESOP statement you received), update your address with the Settlement Administrator through the official Settlement Website. If your check is returned undeliverable, your payment may be delayed indefinitely.
If you want a rollover to an IRA or retirement account: complete, sign, and return the Rollover Election Form. You can do this online through the official Settlement Website (faster) or by mail (must be postmarked by July 24, 2026). A rollover routes your settlement payment directly into a qualified retirement account (such as an IRA) instead of mailing you a check. For any questions about how either option applies to you, refer to the IRS or a qualified tax professional.
If you disagree with the Settlement: file a written objection with the Court by July 24, 2026, and submit it to the Settlement Administrator. You can also attend the Final Fairness Hearing on August 14, 2026 to voice your concerns (in person at the Southern District of New York courthouse in Manhattan). Importantly, even if you object, you still receive the Settlement payment. Objecting does NOT let you opt out of the class.
Key Dallas BBQ ESOP Settlement Deadlines
• Rollover Election Form deadline (only if you want a rollover instead of a check): Friday, July 24, 2026 (postmarked if mailed)
• Written objection deadline (only if you disagree with the Settlement): Friday, July 24, 2026 (postmarked if mailed)
• Notice of Intention to Appear at Fairness Hearing (only if you want 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 will NEVER ask you to pay a fee to process your settlement, release your payment, or expedite your check. The Settlement is 100 percent free for class members. Anyone asking for an "activation fee" or "release fee" is running a scam.
• Never share your bank account password, full credit card number, or other sensitive credentials with anyone claiming to handle your settlement. The Settlement Administrator does not need this information to mail you a check or process your rollover.
• Use the official Settlement Website only: DallasBBQESOPSettlement.com. Type the URL directly. Be cautious of any email or text linking from a different domain.
• If you receive a check, verify it through your bank before depositing or cashing. Legitimate checks will be 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
How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims: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.
Do I need to file a claim?
No. Payment is automatic. The only optional action is the Rollover Election Form if you want your payment routed to an IRA or 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 Representatives: Jamaal Lloyd and additional named plaintiffs
• 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. If you have questions about your specific allocation, contact the Settlement Administrator through the official Settlement Website. For any questions about how the cash payment or a rollover applies to you, refer to the IRS or a qualified tax professional.
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Submit Claim| Dallas BBQ ESOP Settlement Snapshot | |
| Status | Preliminarily Approved — Automatic Payment for Class Members |
|---|---|
| Total Settlement Value | Approximately $22.5 million (Class Counsel's estimate) |
| Cash Component | $10,000,000 (escrow fund for cash payments, fees, and expenses) |
| Loan Principal Forgiveness | $12,000,000 (increases stock value held by current ESOP participants) |
| Accrued Interest Forgiveness | $9,700,000 (further increases stock value held by current ESOP participants) |
| Per-Share Cashout Payment | $24.70 per share (for shares cashed out at a December 31, 2025 or earlier price) |
| Estimated Recovery Rate | Approximately 71% of claimed losses (per Class Counsel) |
| Class Period | July 29, 2016 through December 31, 2025 |
| Class Size | Approximately 1,000 W BBQ Holdings ESOP participants and beneficiaries (per Bloomberg Law) |
| Opt-Out Available? | No — mandatory non-opt-out class action under ERISA |
| Claim Form Required? | No — payment is automatic; only optional form is the Rollover Election Form |
| Rollover Form Deadline | Friday, July 24, 2026 (postmarked if mailed) — optional, for retirement account routing |
| Objection Deadline | 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 |
| Estimated Distribution Date | On or before March 15, 2027 (best case, no appeals) |
| Five-Year Installments | Former employees receive ESOP account distributions in 5 equal annual checks starting the year after Settlement becomes final |
| Defendants | Argent Trust Company (ESOP trustee); Herbert Wetanson; Gregor Wetanson; Stuart Wetanson; W BBQ Holdings Board of Directors; Gregor Wetanson 2015 Gift Trust; BBQ Trust |
| Underlying Conduct | Alleged 2016 sale of Dallas BBQ to its own ESOP for approximately $99 million at an alleged inflated price in violation of ERISA; Defendants deny wrongdoing |
| 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 |
| Presiding Judge | Hon. Denise L. Cote |
| Mediator | Hon. Stewart Aaron (Ret.) (resolved Plan of Allocation question) |
| Class Representatives | Jamaal Lloyd and additional named plaintiffs (two former Dallas BBQ employees with vested ESOP accounts) |
| Class Counsel | Cohen Milstein Sellers & Toll PLLC |
| Settlement Administrator | Atticus Administration LLC |
| Independent Fiduciary | Required per ERISA; report to be filed with Court before objection deadline |
| Attorneys' Fees Cap | Up to $6,200,000 |
| Litigation Expenses Cap | Up to $850,000 |
| Service Awards | $25,000 each to two Class Representatives |
| Parallel DOL Settlement | $15 million total ($14M loan principal reduction + $1M cash over April 2026 to October 2027) reached February 2026; only current employees working 1,000+ hours receive DOL cash |
| DOL Cash Offset | 60% partial offset of 2026 DOL cash allocation against private settlement payment (current employees only); 2027 DOL payments not offset |
| Statutory Basis | Employee Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001 et seq. |
| Category | ERISA / ESOP / Employee Benefits / Retirement Plan / Restaurant Industry / Dallas BBQ |
| Official Website | Dallas BBQ ESOP Settlement |