The Department of Labor is suing an Indiana nursing home management company and a bank over a $40 million purchase made as part of an employee stock ownership plan.
The suit claims Miller's Health Systems Inc., of Warsaw, and PBI Bank, based in Louisville, in 2007 approved a $40 million purchase of stock that was well in excess of its fair market value. The suit also claims that PBI charged an excessive interest rate to finance the stock purchase.
The suit seeks restoration of all losses and the removal of PBI as the plan's fiduciary and service plan provider and to permanently bar it from such roles.
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