Sherwin-Williams Reaches Settlement with US Department of Labor
The Sherwin-Williams Company (the "Company") (NYSE: SHW) announced that is has reached an agreement with the U.S. Department of Labor (the "DOL") to settle the previously disclosed investigation of transactions related to the Company's employee stock ownership plan ("ESOP"). This agreement fully resolves all DOL claims regarding the Company's ESOP transactions. The DOL had notified the Company, certain current and former directors of the Company, and the ESOP trustee of potential enforcement claims asserting breaches of fiduciary obligations and sought compensatory and equitable remedies, including monetary damages to the ESOP for alleged losses to the ESOP relating to third-party valuation of the Company's convertible serial preferred stock.
The Company believes that the DOL's claims are without merit and strongly disagrees with the allegation that ESOP plan participants sustained losses of any kind as a result of these transactions. The Company's position is supported by internal audits and audits by an independent third-party and the DOL. Following a nine-month negotiation with the DOL, the Company's management and Board of Directors have decided that it would be in the best interest of the Company and its shareholders to enter