In The Pioneer Centres Holding Company Employee Stock Ownership Plan and Trust v. Alerus Financial, N.A., No. 15-1227 (10th Cir. 2017), the Pioneer Centres Holding Company Employee Stock Ownership Plan and Trust (the “Plan” or “ESOP”) and its trustees sued Alerus Financial, N.A. (“Alerus”) for breach of fiduciary duty in connection with the failure of a proposed employee stock purchase. The district court granted summary judgment to Alerus after determining the evidence of causation did not rise above speculation. The Plan appeals, claiming the district court erred in placing the burden to prove causation on the Plan rather than shifting the burden to Alerus to disprove causation once the Plan made out its prima facie case. In the alternative, the Plan contends that even if the district court correctly assigned the burden of proof, the Plan established, or at the very least raised a genuine issue of material fact regarding, causation.
Upon reviewing the case, the Tenth Circuit Court of Appeals (the “Court”) affirmed the district court’s judgement. In doing so, the Court indicated that it found no error of law or abuse of discretion by the district court that would warrant reversal .