$22.5M Dallas BBQ ERISA ESOP Settlement, Are You Eligible to Claim?

The Dallas BBQ ESOP Settlement is an ERISA (Employee Retirement Income Security Act) class action where eligible current and former W BBQ Holdings employees can receive an average gross recovery of approximately $15,000 by participating in a proposed $22,500,000 settlement fund. Named plaintiff Jamaal Lloyd sued Argent Trust Company and the executives behind W BBQ Holdings Inc. in 2022, claiming they cost workers millions in retirement savings by selling 400,000 shares of W BBQ common stock for nearly $99 million in an inflated deal in 2016. Plaintiffs filed for preliminary approval on April 17, 2026, and the settlement is now before the court.

Quick-Facts

Field	Detail
Settlement Amount	$22,500,000 (structured as $10,000,000 cash + $12,500,000 in debt reductions owed to selling shareholders)
Claim Deadline	TBD — claim portal not yet open pending preliminary court approval
Who Qualifies	Current and former participants and beneficiaries of the W BBQ Holdings Inc. ESOP
Payout Per Person	Approximately $15,000 average gross recovery across ~1,500 class members
Proof Required	TBD — claim form not yet released by administrator
Settlement Status	Proposed — Preliminary Approval Pending as of April 17, 2026
Administrator	TBD — not yet publicly identified
Official Website	TBD — claim portal not yet open
Last Updated	April 22, 2026

Current Status & What Happens Next

• The proposed deal includes a $10,000,000 cash payment and reductions to the amounts owed to selling shareholders of WBBQ Holdings Inc., with an April 17 motion seeking preliminary approval from U.S. District Court for the Southern District of New York Judge Denise L. Cote.
• The settlement was reached on the cusp of trial after fact discovery, expert discovery, and the vast majority of trial preparation were completed — plaintiffs’ counsel described this as a circumstance that strengthens confidence in the settlement’s value.
• The U.S. Department of Labor separately sued Argent and W BBQ in 2024 over the same ERISA violations, and the parties struck a $15,000,000 deal to resolve that enforcement case in February 2026. The class action settlement is a separate resolution for plan participants.

What Is the Dallas BBQ Lawsuit About? Lloyd et al. v. Argent Trust Company et al., No. 1:22-cv-04129

On May 20, 2022, Cohen Milstein filed Lloyd et al. v. Argent Trust Company et al., Case No. 1:22-cv-04129, in the U.S. District Court for the Southern District of New York, under the Employee Retirement Income Security Act of 1974 (ERISA), on behalf of participants and beneficiaries of the W BBQ Holdings, Inc. Employee Stock Ownership Plan. ERISA is the federal law that sets minimum standards for most voluntarily established retirement plans and requires plan fiduciaries to act solely in the interest of plan participants.

Plaintiffs allege that Argent Trust Company, as ESOP trustee, and W BBQ Holdings owner Herbert Wetanson, along with controlling managers and shareholders, breached their fiduciary duties by causing the ESOP to purchase shares of W BBQ Holdings stock at an inflated price that far exceeded fair market value — and by arranging for continued payments to the seller defendants after the sale closed. In plain terms: the workers’ retirement accounts bought into their own company at an overprice, and the people who set the price stood to profit from it.

In the years following the 2016 acquisition, the stock price fell significantly for reasons plaintiffs contend were foreseeable at the time the deal was struck. The practical result: employees’ retirement savings, held entirely in company stock, lost substantial value.

Related article: $2.3M Sun Communities Securities Fraud Settlement, Are You Eligible to Claim?

Who Is Eligible for the Dallas BBQ ESOP Settlement?

• You may qualify if you are a current or former participant or beneficiary of the W BBQ Holdings, Inc. Employee Stock Ownership Plan (ESOP).
• You may qualify if your ESOP account held W BBQ Holdings, Inc. stock at any point connected to or after the 2016 stock purchase transaction in which the ESOP acquired approximately 400,000 shares for approximately $99,000,000.
• You may qualify if you are among the approximately 1,500 class members identified in the April 17, 2026 preliminary approval motion filed with Judge Denise L. Cote.
• You may qualify if you worked at Dallas BBQ, a New York City restaurant and catering chain operated by W BBQ Holdings, Inc., during the covered employment period.
• You may not qualify if you opted out of the certified class during the prior notice period, or if your ESOP account had no exposure to the W BBQ Holdings stock at the time of the transaction.

Note: The precise covered class period and full eligibility criteria are TBD — subject to the preliminary approval order from Judge Cote.

How Much Money Can You Get from the Dallas BBQ ESOP Settlement?

The proposed deal reflects an average gross recovery of about $15,000 for each of the approximately 1,500 class members. The $22,500,000 total value is structured in two parts: $10,000,000 in direct cash, and $12,500,000 in reductions to amounts the company still owes to the selling shareholders — relief that protects the ongoing financial health of the ESOP and the company’s ability to fund future employee retirement benefits.

Plaintiffs’ counsel described the recovery as approximately 71% of the losses class members claimed from the ESOP sale — a result they called far exceeding typical recoveries in comparable ERISA class actions. Individual payouts will vary based on each participant’s account balance and length of plan participation during the covered period. Attorneys’ fees, administration costs, and named plaintiff service awards will be deducted from the settlement fund before individual payments are distributed.

Step-by-Step: How to File Your Dallas BBQ ESOP Claim Form

The claim portal is not yet open. Preliminary approval from Judge Cote must first be granted before class notices go out. When the process opens, eligible class members should follow these steps:

1. Watch for your class notice — after preliminary approval, the settlement administrator will send direct notice by mail or email using ESOP plan records.
2. Confirm your eligibility — verify that you participated in the W BBQ Holdings ESOP and that your account held company stock connected to the 2016 transaction.
3. Visit the official claim website — the URL will be printed in your class notice; do not use any third-party site to file your claim.
4. Complete the claim form — provide your personal information, ESOP account details, and employment dates as instructed.
5. Submit your claim and save your confirmation number — retain all submission records as proof of a timely, valid filing.
6. Monitor for payment instructions — after the final fairness hearing and court approval, the administrator will distribute payments and provide instructions for receiving funds.

Estimated time to complete: 10–15 minutes once the portal opens.

Important Deadlines & Dates

Milestone	Date
ESOP Stock Transaction Challenged	July 2016
Lawsuit Filed	May 20, 2022
Motion to Compel Arbitration Denied	December 6, 2022
Second Circuit Affirms Arbitration Denial	January 3, 2025
DOL Enforcement Case Filed	December 2024
Class Certified	May 2025
DOL $15M Separate Settlement Reached	February 2026
Class Settlement Agreement in Principle	March 9, 2026
Preliminary Approval Motion Filed	April 17, 2026
Preliminary Approval Hearing	TBD — pending scheduling by Judge Cote
Claim Filing Deadline	TBD — opens after preliminary approval is granted
Opt-Out Deadline	TBD — pending preliminary approval order
Objection Deadline	TBD — pending preliminary approval order
Final Approval Hearing	TBD — pending preliminary approval order
Expected Payment Date	TBD — pending final court approval

Frequently Asked Questions

1. Do I need a lawyer to file a claim?

 No. Once the Dallas BBQ ESOP settlement claim process opens, eligible class members can participate without hiring personal counsel. The class is represented collectively by Cohen Milstein Sellers & Toll PLLC in Case No. 1:22-cv-04129. If you have specific questions about your individual recovery amount or account history, you may wish to consult the firm directly.

2. Is this settlement legitimate?

 Yes. The proposed $22,500,000 settlement is a court-supervised ERISA class action pending before U.S. District Judge Denise L. Cote of the Southern District of New York, Case No. 1:22-cv-04129. The U.S. Department of Labor also pursued independent enforcement action against the same defendants over the same 2016 transaction, further confirming the seriousness of the underlying allegations.

3. When will I receive my payment? 

Payment timing is TBD. Preliminary approval from Judge Cote must first be granted, followed by a class notice period and then a final fairness hearing. Given the April 17, 2026 filing for preliminary approval, eligible workers should not expect payments before late 2026 at the earliest.

4. What if I missed the claim deadline? 

No claim deadline has been set yet. If you believe you qualify as a class member and do not receive direct notice after preliminary approval is granted, contact Cohen Milstein Sellers & Toll PLLC promptly to verify your class membership status before the deadline closes.

5. Will this settlement payment affect my taxes? 

Possibly. ERISA settlement payments that restore retirement plan losses may receive favorable rollover treatment if directed into a qualifying retirement account. Payments distributed as cash may be treated as ordinary income. Consult a qualified tax advisor regarding your specific situation — the settlement’s class notice will also address the tax treatment of payments when it is issued.

6. What is an ESOP, and why does it matter here?

 An ESOP — Employee Stock Ownership Plan — is an ERISA-regulated retirement benefit in which employees accumulate company stock as their primary retirement asset. The WBBQ ESOP invested the individual retirement accounts of current and former employees entirely in the stock of W BBQ Holdings, Inc. Because there was no diversification, an inflated purchase price for that stock directly and disproportionately harmed workers’ retirement savings.

7. Did the U.S. Department of Labor take action in this case?

 Yes. The DOL filed its own enforcement case in December 2024 targeting the same 2016 transaction, and reached a separate $15,000,000 settlement with Argent Trust Company and the Wetansons in February 2026. That government settlement is a distinct proceeding from the class action and does not replace class members’ right to recover under the private $22,500,000 settlement.

8. How strong is the class’s recovery compared to similar ERISA cases? 

Plaintiffs’ counsel called the settlement a recovery of approximately 71% of claimed losses — a result they said far exceeds typical recoveries in comparable ERISA class actions. The settlement was reached after full fact and expert discovery and on the eve of trial, which plaintiffs’ counsel argued gives class members confidence that counsel had a thorough understanding of both the strengths and weaknesses of the case before agreeing to terms.

Sources & References

• Cohen Milstein Sellers & Toll PLLC — WBBQ ESOP Litigation Case Page: https://www.cohenmilstein.com/case-study/wbbq-esop-litigation/
• Justia Dockets — Lloyd et al. v. Argent Trust Company et al., Case No. 1:2022-cv-04129 (S.D.N.Y.): https://dockets.justia.com/docket/new-york/nysdce/1:2022cv04129/580196
• USA Herald — DOL Settlement Coverage (February 17, 2026): https://usaherald.com/bbq-esop-dol-15m-settlement-faces-pushback-as-class-seeks-trial-assurances/

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against official court records and plaintiffs’ counsel case filings on April 22, 2026. Last Updated: April 22, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.