In a psychopathic move which gutted the retirement security of approximately 280 people, A360 leadership sold the company’s stock for roughly half of its estimated market value.
The evil company then immediately amended its internal policies to block workers from suing for the total loss, forcing them into a legal system designed to minimize corporate liability. While a legal court has currently stepped in to preserve the workers’ rights, the incident highlights a systemic trend where corporate profits are maximized by devaluing the labor and savings of the workforce.
The core of this misconduct involves a scheme to sell company stock at a steep discount to an entity controlled by the same individuals running the business.
In 2017, the A360 employee retirement plan became the sole owner of the company by purchasing a million shares. By 2019, the executives sold those shares for $34.6 million. However, financial analysis indicates the stock was actually worth $70 million.
This created a massive $35.4 million gap, money that rightfully belonged to the employees but remained in the hands of the buyers.
Timeline of Corporate Maneuvers
| Date | Event | Impact on Workers |
| November 2016 | Gerald Shapiro creates A360, Inc. | The foundation for the retirement plan is established. |
| January 2017 | The retirement plan buys 1,000,000 shares for $30 million. | Employees become the owners of the company. |
| Sept 2019 | Executives sell the shares for $34.6 million. | The sale occurs at a price allegedly $35.4 million below market value. |
| Sept 2019 | A360 adds a “Class Action Waiver” to the plan. | The company attempts to block workers from suing as a group. |
| Sept 2019 | The retirement plan is terminated. | The plan is shut down five days after the legal rules were changed. |
| Sept 2022 | Employees file a lawsuit. | Workers seek to recover the lost $35.4 million and lost profits. |
Regulatory Capture: Using Fine Print to Kill Accountability
The most calculated aspect of this misconduct was the attempt to use “legal minimalism” to strip workers of their rights. Simultaneously with the undervalued sale, A360 added an arbitration clause to the retirement plan.
This clause was designed to ensure that if a worker noticed the $35 million loss, they could only sue for their own tiny portion of it.
A360’s goal was to make it impossible for anyone to seek “plan-wide” relief.
By forcing 280 people to fight 280 separate legal battles for small amounts, the company hoped to make the cost of litigation so high that the workers would simply give up. This is a common strategy under neoliberal capitalism: using the “form” of a contract to destroy the “substance” of a legal right.
Profit-Maximization at All Costs
The decisions made by A360 leadership reflect a profit-maximization incentive structure that views employee benefits as a liability to be minimized rather than a debt to be honored.
By selling the company to A360 Holdings LLC for a fraction of its value, the fiduciaries (the people legally required to protect the workers’ interests) prioritized the interests of the buyers and themselves. This reflects the logic of late-stage capitalism, where the extraction of value from a workforce is seen as a clever business strategy rather than a breach of trust.
Families Left Behind
The impact of this $35 million loss falls squarely on the shoulders of the 280 plan participants. For these workers, the “nest egg” they were promised for retirement has been significantly diminished. In an era of rising costs and economic instability, the loss of half of a retirement fund can be the difference between a stable life and financial ruin in old age. The misconduct here did not just affect a balance sheet; it destabilized the long-term survival of hundreds of families.
Corporate Accountability and the Public Interest
The court eventually ruled that the A360’s attempt to block group lawsuits was unenforceable. This decision is a rare victory against the “PR machine” and legal tactics that corporations use to shield themselves. However, the case still shows that even when federal laws exist to protect workers (which again, is rare but does occasionally happen), evil companies will actively seek out loopholes to bypass those protections.
True reform requires moving beyond simple fines. It requires a system where corporate transparency is mandatory and where the “strategic use of time” and “complex legal structures” can no longer be used as a shield for predation. This case is a reminder that the current economic system often rewards those who treat legal compliance as an obstacle to be managed rather than a moral baseline.
Frivolous or Serious Lawsuit?
This is a profoundly serious lawsuit with well-documented evidence of financial harm. The gap between the $34.6 million sale price and the $70 million valuation represents a concrete injury to hundreds of people.
The company’s immediate attempt to change the rules to prevent a group lawsuit suggests a high level of awareness regarding the potential for legal consequences.
💡 Explore Corporate Misconduct by Category
Corporations harm people every day — from wage theft to pollution. Learn more by exploring key areas of injustice.
- 💀 Product Safety Violations — When companies risk lives for profit.
- 🌿 Environmental Violations — Pollution, ecological collapse, and unchecked greed.
- 💼 Labor Exploitation — Wage theft, worker abuse, and unsafe conditions.
- 🛡️ Data Breaches & Privacy Abuses — Misuse and mishandling of personal information.
- 💵 Financial Fraud & Corruption — Lies, scams, and executive impunity.
