A Settlement has been reached in a class action lawsuit concerning the RVNB Holdings, Inc. Employee Stock Ownership Plan (the “Plan”). The class action lawsuit involves whether the Plan, which was established in 2012, was administered in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”), including whether the stock held by the Plan was redeemed at fair market value following the termination of the Plan on June 29, 2017. ERISA is the federal law that regulates and sets minimum standards for the administration of most retirement plans in the private sector, including the Plan. The United States Secretary of Labor (the “Secretary”) filed a related lawsuit, which is also being settled as part of this Settlement.

The defendants in the class action are Defendants Neil M. Brozen, Robert Peterson, Jr., Vasilia Peterson, Mike Paxton, Nick Bouras, Sterling Investment Partners III, L.P., Nicole Peterson 2012 Irrevocable Trust, and Brooke Peterson 2012 Irrevocable Trust. The defendants in the Secretary’s action are Robert Peterson, Vasilia Peterson, Paul Generale, Neil Brozen, Nicole Peterson 2012 Irrevocable Trust, Brooke Peterson 2012 Irrevocable Trust, and the RVNB Holdings, Inc. Employee Stock Ownership Plan. Collectively, the defendants in both actions are the “Defendants.” Defendants deny all claims, and nothing in the Settlement is an admission or concession on Defendants’ part of any fault or liability whatsoever.

The Settlement will provide, among other things, for a $12,727,272.73 Qualified Settlement Fund that will be allocated to eligible Settlement Class Members after any Court-approved deductions for Attorneys’ Fees and Costs, Case Contribution Awards, and Administrative Expenses.

The terms and conditions of the Settlement are set forth in the Settlement Agreement filed with the Court on January 9, 2025. Capitalized terms used in the Notice but not defined in the Notice have the meanings assigned to them in the Settlement Agreement. The Settlement Agreement is available here as well as other important documents. All papers filed in this lawsuit are also available for review via the Public Access to Court Electronic Records System (PACER), at http://www.pacer.gov.

The Settlement Class (whose members are “Settlement Class Members”) includes all vested Participants in the Plan as of June 29, 2017, or their Beneficiaries or Alternate Payee. All Defendants, other than Nick Bouras, are excluded from the Settlement Class.

Your rights and the choices available to you—and the applicable deadlines to act—are explained in the Notice. Please note that neither RVNB Holdings, Inc. (“RVNB”) nor any current or former employees, attorneys, or representatives of RVNB may advise you as to what the best choice is for you or how you should proceed.

The Court still has to decide whether to give its final approval to the Settlement. Payments under the Settlement will be made only if the Court finally approves the Settlement in this Class Action and the Consent Judgment in the related Secretary’s Action, and those final approvals are upheld in the event of any appeal.

A Fairness Hearing will take place on July 16, 2025, before the Honorable Ada Brown, United States District Court for the Northern District of Texas, 1100 Commerce Street, Dallas, Texas 75242-1003, in Courtroom 1310, to determine whether to grant final approval of the Settlement and approve the requested Attorneys’ Fees and Costs, the requested Case Contribution Awards to the Named Plaintiffs, and Administrative Expenses. If the Fairness Hearing is rescheduled, or if it is held by video conference or telephone updates will be posted to this website.

Any objections to the Settlement, or to the requested Attorneys’ Fees and Costs, Case Contribution Awards, and/or Administrative Expenses, must be filed with the Clerk of Court and served in writing on Class Counsel and Defense counsel, as identified in FAQ 11.