Liberty Latin America's 401(k) Snags Quick Stock Rights Exemption
Published Date: 2/26/2026
Notice
Summary
The Liberty Latin America 401(k) Plan in Denver got a special green light to buy, hold, and sell certain stock rights from September 10 to 25, 2020. This means plan members could grab these rights for free and either sell them or buy discounted stock, helping their retirement savings. The Department of Labor reviewed and approved this move as fair and safe for everyone involved.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 2 costs, 0 mixed.
Free stock rights for 401(k) participants
Members of the Liberty Latin America 401(k) Plan were issued stock subscription rights at no additional cost between September 10 and September 25, 2020. You could either sell those Rights at fair market value or exercise them to buy Series C Liberty Latin America stock at a discount, potentially increasing your retirement holdings.
No oversubscription option for participants
Under the Rights Offering, Plan participants were treated the same as other shareholders except that the oversubscription option available in the offering was not available to Plan participants. This meant Plan participants could not subscribe for additional shares through the oversubscription feature during the September 10–25, 2020 period.
Selling Rights: fees charged against proceeds
The Plan did not pay brokerage, commission, or subscription fees for acquiring or holding the Rights, but any Securities Exchange Commission fee and the commission paid to the Trustee's affiliate (Fidelity Capital Markets) were charged against the price received by a Plan participant who sold a Right. Those charges reduced the seller's net proceeds from a sale during the September 10–25, 2020 period.
Committee-directed sale to protect unexercised Rights
If any Rights remained unexercised and unsold toward the end of the offering, the 401(k) Committee could direct the Plan's trustee to sell those Rights on the open market. Any such sale had to be effected prudently so that Plan participants received at least fair market value for the Rights sold during the September 10–25, 2020 period.
Record access and six-year retention requirement
LiLAC must keep records related to the Rights transactions for six years from the publication date and make them available during normal business hours to the Department of Labor, the IRS, LiLAC, the Plan fiduciary, and any Plan participant or their representative. The Plan also must provide those records to the Department within 30 days if requested.
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