This article identifies issues with management-prepared financial projections that have been raised by the U.S. Department of Labor (DOL) and by private plaintiffs in ESOP litigation. The objective of this discussion is to inform employee stock ownership plan (ESOP) advisers, ESOP sponsor companies, and prospective ESOP sponsor companies of the factors to consider when preparing and assessing company management’s financial projections. This discussion includes a review of (1) conversations with representatives of the DOL, (2) fiduciary process settlement agreements, and (3) a list of 16 ESOP-related judicial decisions.

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