A proposed $22.5 million class action settlement resolves claims that Dallas BBQ’s employee stock ownership plan paid an inflated price when it purchased the company in 2016. Eligible current and former participants with vested ESOP shares may receive cash payments and other benefits if the settlement receives final approval.
If you participated in the Dallas BBQ Employee Stock Ownership Plan (ESOP), this settlement could put money back in your pocket, and you may not need to do anything to receive it.
What happened?
The lawsuit alleged that Dallas BBQ’s original owners and the trustee overseeing the transaction violated the Employee Retirement Income Security Act (ERISA) by selling the company to the ESOP at an inflated price in 2016.
According to the lawsuit, the transaction harmed ESOP participants by causing the plan to overpay for company stock.
Who is eligible?
You may be included in the settlement if you:
- Participated in the W BBQ Holdings Inc. Employee Stock Ownership Plan (ESOP) on or after July 29, 2016
- Had vested Dallas BBQ stock in the ESOP at any time between July 29, 2016, and Dec. 31, 2025
- Are a beneficiary of a participant who held vested ESOP stock during that period
The settlement includes:
- Current employees with vested ESOP shares
- Former employees who held vested shares during the class period
- Eligible beneficiaries, including surviving spouses, alternate payees, and certain legal representatives
This is a mandatory class settlement, meaning class members cannot opt out.
How much money can you get?
The settlement has an estimated total value of $22.5 million, including:
- $10 million cash payment
- $12 million in loan principal forgiveness
- $9.7 million in accrued interest forgiveness
Cash payments will vary based on individual circumstances.
- Class members whose shares were cashed out on or before Dec. 31, 2025 are expected to receive $24.70 per share
- Participants with vested shares remaining in ESOP accounts after Dec. 31, 2025, will receive a share of the settlement based on the court-approved allocation formula
- Certain current employees may receive reduced cash distributions due to payments expected from a related Department of Labor settlement
The settlement also increases the value of ESOP shares through loan and interest forgiveness.
Your options
| Option | What It Means | Deadline |
|---|---|---|
| Do Nothing | Automatically receive settlement benefits if approved. No claim form required. | No action required |
| Submit a Rollover Form | Elect to have your settlement payment rolled into a qualified retirement account instead of receiving a check. | July 24, 2026 |
| Object | Tell the court why you disagree with the settlement terms or fee request. | July 24, 2026 |
| Attend the Fairness Hearing | Ask to speak to the court about the settlement. | August 14, 2026 |
| Receive Automatic Payment | Eligible class members will automatically receive settlement proceeds if approved. | No claim form required |
How to file a claim?
Good news: No claim form is required. If you’re an eligible class member, settlement payments will be distributed automatically if the court grants final approval.
The only action you may need to take is if you’d prefer your payment to be sent as a direct rollover to a qualified retirement account rather than receiving a check.
To choose a rollover, you must submit a completed rollover form by July 24, 2026.
Settlement Administrator
Dallas BBQ ESOP Settlement
c/o Atticus Administration
PO Box 64053
St. Paul, MN 55164
Phone: 1-800-793-1019
Email: [email protected]
If the court approves the settlement and no appeals are filed, cash payments are expected to be distributed on or before March 15, 2027.
