Former and current AMPAM Parks Mechanical employees who vested in the company’s ESOP do not have to file anything to share in a $13.75 million settlement — the only decision on the table is whether to take the money as a check or roll it into a retirement account. That choice, made on an optional rollover form, is due November 12, 2026. Do nothing and, if the court approves the deal, a check is mailed to the address on file.
Status: Preliminarily approved, pending final approval | No claim form — payment is automatic | Rollover form and objections due November 12, 2026 | Pro rata share of $13,750,000
Why the ESOP Sued
The case is Ramirez v. AMPAM Parks Mechanical, Inc., No. 5:24-cv-01038-KK-DTB, filed in May 2024 in the U.S. District Court for the Central District of California. It concerns the AMPAM Parks Mechanical, Inc. Employee Stock Ownership Plan.
The plaintiffs alleged that the ESOP paid an inflated price when it bought AMPAM stock from the company’s original owners in 2019, and then received a deflated price when it sold AMPAM in 2023, in breach of fiduciary duties under the Employee Retirement Income Security Act. They also alleged that AMPAM’s board failed to monitor the ESOP’s trustees. The defendants deny violating any law or duty owed to the ESOP or its participants and say both sales were for fair market value. The court has not decided who was right.
The parties signed the settlement agreement on July 30, 2026 after a June mediation, and Judge Kenly Kiya Kato granted preliminary approval on August 25, 2026. The administrator, Atticus Administration, has mailed notice in English and Spanish to class members identified from the ESOP recordkeeper’s data.
Who Is Covered
The class is every participant in the AMPAM ESOP on August 6, 2023 or at any time afterward who vested under the plan’s terms, plus those participants’ beneficiaries. It was certified in March 2025 and has about 1,100 members. The defendants and their immediate families, plan fiduciaries, AMPAM officers and directors, officers and directors of entities a defendant controls, and the legal representatives, successors and assigns of anyone excluded are left out.
This is a mandatory class. Members cannot opt out, and if the settlement is approved every member is bound and releases the covered claims. The route for disagreement is an objection.
What Each Payment Is Based On
The defendants are paying $13,750,000. Before anything is divided, court-approved fees and costs come out:
| Attorneys’ fees | Up to one-third of the $13.75 million, as requested by class counsel. |
| Litigation expenses | Up to $600,000. |
| Service awards | Up to $25,000 for each of the two class representatives. |
| Administration and Independent Fiduciary costs | Paid from the fund. |
If the court awards everything requested, the net fund would be roughly $8.5 million before administration and Independent Fiduciary costs. That remainder is split in proportion to each person’s share of the total vested AMPAM shares, so workers with more vested shares receive more.
In their preliminary approval motion, the plaintiffs estimated the average gross recovery at about $12,000 per class member and put the fund at about 56% of the ESOP’s estimated damages. That figure is gross, before fees and costs, and individual payments will vary with vested share counts.
Check or Rollover
The AMPAM ESOP settlement has no claim form; payments are calculated from the ESOP’s own records. The single form in the case is the optional rollover form, for class members who want the payment deposited into a qualified retirement account instead of mailed as a check. The online rollover form opens after you enter the Notice ID printed on your mailed notice and your last name. You can also return the form by mail, postmarked by November 12, 2026.
How a check or a rollover is taxed is a question for the IRS or a tax professional. Because checks are mailed to the address the administrator has on file, the notice makes keeping that address current the class member’s responsibility; changes go through the official website’s contact page.
The Independent Fiduciary
Because the settlement releases claims that belong to a retirement plan, the agreement requires a neutral Independent Fiduciary to review it on behalf of the ESOP and its participants and decide whether it is fair and reasonable. Its determination is due 35 days before the hearing and is to be posted on the settlement website.
Dates
| October 29, 2026 | Class counsel’s fee, expense and service-award papers to be posted on the settlement website. |
| November 12, 2026 | Deadline for rollover forms (online or postmarked), objections, and notices of intention to appear at the hearing. Objections must be filed with the court and sent to the administrator. |
| December 3, 2026, 10:30 a.m. PT | Fairness hearing before Judge Kato, Courtroom 3, federal courthouse in Riverside. |
The official sources give dates only, with no time of day for the November 12 deadline. The written requirements for an objection are in the settlement website’s FAQ.
After the Hearing
The court can approve the settlement, reject it or postpone a decision, and the hearing date can change. Under the agreement, the defendants pay the remaining $13.7 million within 30 days after a final approval order. The notice says payments go out shortly after approval if no one appeals; an appeal would delay them, often by more than a year. No final approval order or payment date had been announced as of October 27, 2026.
The notice, agreement and court filings are on the official AMPAM ESOP settlement website and its settlement documents page. Our sister site keeps its AMPAM ESOP settlement page updated through the hearing.
Frequently Asked Questions
Do I need to file a claim in the AMPAM ESOP settlement?
No. There is no claim form. If the court approves the settlement, eligible class members are paid automatically by check from the ESOP’s records unless they choose a rollover.
How do I get my payment rolled over instead of mailed?
Submit the optional rollover form online by November 12, 2026 using the Notice ID on your mailed notice and your last name, or mail it postmarked by that date.
How much will I receive?
Payments are a pro rata share of the net fund based on your share of total vested AMPAM shares. The plaintiffs estimated the average gross recovery at about $12,000 per class member before fees and costs; individual amounts will vary.
Can I opt out?
No. The court approved the settlement for notice as a mandatory class. Class members can object by November 12, 2026 instead.
What do class counsel want in fees?
Up to one-third of the $13.75 million fund in attorneys’ fees, up to $600,000 in litigation expenses, and up to $25,000 for each of the two class representatives. The court decides the amounts.
When will payments go out?
Only after final approval. The fairness hearing is December 3, 2026. The notice says payments go out shortly after approval if there is no appeal; an appeal could delay them by more than a year.
Sources
- Official settlement website, important dates, FAQ and documents — AMPAMSettlement.com, administered by Atticus Administration.
- Class Action Settlement Notice and Class Action Settlement Agreement dated July 30, 2026.
- Order Granting Preliminary Approval, Ramirez v. AMPAM Parks Mechanical, Inc., No. 5:24-cv-01038-KK-DTB (C.D. Cal. Aug. 25, 2026), Dkt. 264.
- OpenClassActions.com — AMPAM Parks Mechanical ESOP Settlement.
Source and credit: the settlement terms, deadlines and benefit details described above are drawn from our sister site’s reporting — OpenClassActions.com: AMPAM Parks Mechanical ESOP Settlement — which tracks this case against the court-approved notice and the official settlement website and is updated as the court rules.
Legal Disclaimer
This article is for informational purposes only and is not legal advice. OpenClassActions.org is a consumer news site, not a law firm and not the settlement administrator, and is not affiliated with any party to the case described. The allegations are allegations; unless a court has ruled, the defendants deny wrongdoing and no court has decided the merits. Deadlines, benefit amounts and payment timing can change as the court and the administrator act, so confirm current status on the official settlement website. You never need to pay anyone to file a claim or to receive a settlement payment.